The recent decline in Bitcoin's price can be attributed to several key factors:

1. **U.S. Economic Data**: The release of the latest U.S. economic Consumer Price Index (CPI) data raised concerns about ongoing inflation, impacting market sentiment and contributing to the price drop[1].

2. **Federal Reserve's Hawkish Stance**: Anticipation of the Federal Reserve's hawkish interest rate decision and significant long position liquidations have influenced Bitcoin's price decline. Investors are closely monitoring the Fed's stance on inflation and interest rates, which has added to market uncertainty[2].

3. **Technical Analysis**: From a technical perspective, Bitcoin's price decline is part of a broader correction after testing a key falling trendline resistance. The breach of the lower trendline of a descending triangle pattern, accompanied by increased trading volumes, signaled a breakdown scenario, potentially leading to a target price of $50,000 by the end of June[2].

4. **Market Dynamics**: The broader liquidation of long positions versus short ones, visible in the Bitcoin derivatives market, has further fueled the cryptocurrency's underperformance. The liquidation of long positions involves selling off assets, which can drive prices down. Additionally, reduced open interest and a drop in the funding rate suggest a decrease in speculative trading and market confidence[2].

These factors, combined with market volatility and regulatory uncertainties, have contributed to the recent decline in Bitcoin's price. Investors are closely monitoring these developments to gauge the future direction of the cryptocurrency market.