Bitcoin Holds Near $81,000 as Markets Await CPI Data and US Senate Regulatory Hearing

Bitcoin has continued to retreat from its highs, with $62,000 emerging as a key support level for the market. The U.S. Bureau of Labor Statistics’ consumer price index (CPI) influences expectations for Federal Reserve rate cuts, which in turn affect dollar liquidity and valuations for risk assets including cryptocurrencies. That makes the U.S. inflation reading for May particularly important.

Bitcoin most recently fell below $62,000 and briefly approached $61,000. More than $426 million in positions were liquidated across the market over the past 24 hours, with long positions accounting for about 80%, while the Fear Index dropped to 12. U.S. core CPI subsequently rose 0.2% month on month in May, less than the market had feared, helping Bitcoin pare some losses. The $60,000 threshold nevertheless remains under pressure.

Bitcoin and Ether have recently been pulled by both geopolitical developments and the outlook for U.S. inflation. Uncertainty remains over a U.S.-Iran ceasefire agreement, while markets are awaiting the U.S. consumer price index (CPI) for March. A shift toward safe-haven assets has pressured cryptocurrencies, making their ability to hold key price levels a gauge of risk sentiment.

In the latest trading, Bitcoin fell below the $72,000 threshold, while Ether also slipped under the psychologically important $2,200 level. Conflicting reports about a U.S.-Iran ceasefire and caution ahead of the March CPI release accelerated the unwinding of leveraged positions. Liquidations across the crypto market totaled about $300 million over the past 12 hours as investors awaited the inflation data.