Bitcoin drops to $58K as US PCE inflation hits three-year high

Bitcoin cratered to roughly $58,000 on May 28, shedding nearly half its value from its late-2025 peak above $126,000. The catalyst: the Personal Consumption Expenditures price index for April 2026 came in at 3.8% year-over-year, the hottest reading since May 2023.

That number landed like a brick on risk assets. US equities sold off, crypto followed, and roughly $600 million in leveraged positions across digital asset markets were liquidated within a single hour.

What the inflation data actually shows

The headline PCE figure of 3.8% was bad enough. Core PCE, which strips out food and energy, hit 3.3% year-over-year in April, its largest gain since November 2023.

Energy prices did much of the heavy lifting. Escalating tensions surrounding the Iran conflict have pushed fuel costs higher, which bleeds into virtually every consumer-facing price category.

What the inflation data actually shows

The headline PCE figure of 3.8% was bad enough. Core PCE, which strips out food and energy, hit 3.3% year-over-year in April, its largest gain since November 2023.

Energy prices did much of the heavy lifting. Escalating tensions surrounding the Iran conflict have pushed fuel costs higher, which bleeds into virtually every consumer-facing price category.