Bitcoin plunges to $58,000 yearly low on hot PCE inflation data

Bitcoin tumbled to $58,200 on Thursday after the Fed's favored PCE index hit a three-year high of 4.1%, sparking $1.48B in crypto liquidations and a bearish shift in prediction markets. Meanwhile, Tether USDt surpassed Ethereum by market cap as ETH sank to $1,510. Bitmine bought another $59M in ETH, nearing 5% of supply; Invesco filed for a GENIUS-compliant stablecoin reserve fund; US agencies proposed new AML rules for stablecoin issuers; DeFi TVL fell 39% YTD; and Base recovered from a block production issue.

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Bitcoin sinks to $58,000 yearly low as PCE inflation hits 3-year high The Fed's favored inflation gauge rose to 4.1% in May, spiking rate-hike fears and sending BTC below $60K for the first time since 2024. Derivatives data shows crowded shorts, setting up a potential squeeze, while $1.48B in crypto liquidations swept the market. 1 2 3 4

Tether USDt becomes second-largest crypto by market cap, overtaking ETH As ETH hit a yearly low near $1,510, USDt's $186B market cap surpassed Ethereum's. The milestone highlights stablecoins' growing dominance, now 15% of total crypto market capital. 5

Bitmine buys $59M more ETH, closing in on 5% of total supply Tom Lee's Bitmine now holds 5.67M ETH — the second-largest corporate crypto treasury after Strategy. The company aims for 'the alchemy of 5%' and generates staking yields on its massive holdings. 6

Invesco files for GENIUS-compliant onchain stablecoin reserve fund The $2.45T asset manager plans a tokenized fund investing in Treasuries to back payment stablecoins, joining BlackRock, State Street, and others in the race for stablecoin reserve management. 7 8

FinCEN and OCC propose customer ID and compliance rules for stablecoin issuers New proposals under the GENIUS Act require stablecoin issuers to verify customers for primary issuance/redemption and align OCC rules with the broader AML/CFT framework. Comments are due in July and August. 9

DeFi TVL drops 39% YTD to $70B amid record $942M in hacks Total value locked fell every month in 2026, with only Tron and Hyperliquid growing. The sector suffered 121 hacks and $942M in losses through June, with KelpDAO and Aave breaches shaking confidence. 10 11

Ethereum L2 Base recovers from block production hiccup Base, Coinbase's Layer 2 network, experienced a temporary block production issue but quickly resumed normal operations without user fund loss. 12