Bitcoin Stays Near $60,000 as 4.1% Inflation and Leverage Squeeze Deepen Bear Market
Updated
Updated · Fortune · Jul 12
Bitcoin Stays Near $60,000 as 4.1% Inflation and Leverage Squeeze Deepen Bear Market
2 articles · Updated · Fortune · Jul 12
Summary
$60,000 Bitcoin has traded roughly flat for a month, still about half its $126,000 peak as analysts say the 2026 slump remains entrenched.
4.1% U.S. inflation in June and expectations of later Fed rate hikes have hurt crypto demand, with investors shifting toward higher-yielding, lower-risk debt.
Leverage built up during the 2024-25 rally is also unwinding: Strategy, which amassed about 4% of Bitcoin supply, has seen its stock drop 75% since October and recently sold part of its holdings.
Analysts also point to Bitcoin's recurring four-year boom-bust pattern, saying long-term holders began trimming positions late in 2025 as investors anticipated another down year.
Near-term views remain cautious, with one analyst seeing a $58,000 bottom, though another expects a summer trough and a rebound toward $100,000 by year-end if rate cuts arrive and the Iran war ends.