Bitcoin tumbled below $64,000 on Thursday, June 4, and Ethereum slid to around $1,740, as a fresh wave of inflation anxiety and geopolitical uncertainty sent risk assets reeling. The moves came alongside a broader sell-off in stocks and commodities, with traders pricing in the possibility that central banks may keep rates higher for longer.
The macro trigger
Thursday's decline followed hotter-than-expected producer price data out of the U.S. and renewed fighting along a contested border in Eastern Europe. Both factors combined to sour the mood on risk-on assets. Bitcoin, which has traded in a range between $60,000 and $70,000 for most of the spring, slipped quickly through support levels as leveraged positions were flushed out.
Ethereum's drop to $1,740 marked its lowest level in three weeks. The token had been holding near $1,800 earlier in the week after a brief rally on ETF speculation, but those gains evaporated by Thursday afternoon.
What the data showed
The U.S. Bureau of Labor Statistics reported that the Producer Price Index rose 0.4% month-over-month in May, above the consensus estimate of 0.3%. Core PPI, excluding food and energy, came in at 0.5%. The numbers reinforced fears that inflation remains sticky, potentially delaying the Federal Reserve's first rate cut — a scenario that tends to weigh on speculative assets like crypto.
On the geopolitical front, a fresh round of cross-border shelling in the disputed region of Nagorno-Karabakh rattled energy markets and pushed investors toward safe havens. Gold edged up, while Bitcoin, often billed as a hedge, moved in lockstep with equities instead.
Liquidations pile up
Data from CoinGlass showed roughly $320 million in long positions were liquidated across crypto derivatives exchanges on Thursday. The bulk of the liquidations hit Bitcoin and Ethereum perpetual swaps, where leverage had been building through the prior week.
Open interest on Bitcoin futures dropped about 8% in the 24 hours after the price dip, suggesting that traders are pulling back risk. Funding rates on major exchanges turned negative briefly, a sign that short sellers were gaining the upper hand.
All eyes are now on the Federal Reserve's June 17–18 meeting. If the central bank signals another hold or a hawkish dot plot, Bitcoin could test support near $60,000. On the flip side, a surprise dovish pivot or a breakthrough in ceasefire talks could reignite buying. For now, traders are playing defense — and the macro calendar doesn't offer a clear reprieve before next week.
