Bitcoin abruptly fell below $68,000, triggering a massive sell-off that affected over 75,000 traders. This unexpected tumble comes against a backdrop of significant outflows from Bitcoin ETFs and growing economic uncertainties, fueled by anticipation of US inflation data and the imminent meeting of the Federal Reserve.

Bitcoin plunges below $68,000

Bitcoin, the queen of cryptos, suffered a severe correction, falling in just a few minutes from nearly $70,000 to $67,500, its lowest level since June 3. This rapid drop resulted in the liquidation of more than 75,000 traders, with total losses estimated at around $170 million. Most of these liquidations involved long positions.

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Meanwhile, Bitcoin ETFs saw net outflows of $64.9 million after 19 days of positive flows. The Grayscale Bitcoin Trust was particularly hard hit, with an outflow of $39.5 million, followed by the Invesco Galaxy $BTC $ETH with $20.5 million. In contrast, some ETFs, such as the Bitwise Bitcoin Fund and BlackRock's iShare Bitcoin Trust, saw modest inflows of $7.6 million and $6.3 million respectively.

Anticipation of US inflation data

The recent fall in Bitcoin comes against a backdrop of strong anticipation of crucial economic data in the United States, particularly those related to inflation. Analysts forecast a 0.1% increase in the Consumer Price Index (CPI) for May, following a 0.5% increase in April. This slight increase would bring annual inflation to 3.4%, while core inflation, which excludes volatile food and energy prices, is expected to increase by 0.3%.