Bitcoin is trading below $62,000 after giving up gains that followed the release of the U.S. May Consumer Price Index report. BTC briefly moved above $62,400 after the inflation data came in near market expectations, but the move faded as renewed U.S.-Iran tensions pushed traders back toward risk-off positioning. At press time, Bitcoin was trading near $61,793 after falling below $62,000. The asset has declined about 7.5% over the past week, while market participants continue watching the $60,000 to $60,500 range as a key short-term support area. The broader market backdrop remains difficult for crypto assets. The U.S. dollar index closed at 100.01, up 0.8% week-on-week and 2.1% over 30 days. The U.S. 10-year Treasury yield held at 4.53%, while the 2-year yield settled at 4.14%, keeping the 10-year to 2-year spread at +0.39%. CPI Report Offers Brief Relief Before Iran Risk Returns The May CPI report showed inflation rising to 4.2%, while core CPI increased to 2.9%. The headline figure marked the highest level since April 2023, while core CPI reached its highest level since September 2025. Although the data largely matched expectations, inflation remains above the Federal Reserve’s 2% target. That kept attention on whether policymakers may hold rates higher for longer or consider additional tightening if price pressures continue. President Trump dismissed inflation concerns, saying he “loved” the inflation data and arguing that higher prices were being driven largely by energy costs linked to the Iran conflict. He said prices could fall once the conflict ends and oil flows normalize. Oil remains a central part of the macro picture. Trump said the U.S. had supported commercial shipping through the Strait of Hormuz and claimed more than 100 million barrels of oil had moved through the route. Bitcoin initially reacted positively to the CPI release as traders interpreted the data as reducing the chance of a more aggressive near-term Federal Reserve response. The move above $62,400 was short-lived after President Donald Trump escalated public remarks toward Iran. Trump said the U.S. military would “hit Iran hard” and also said he was considering targeting Iranian power plants and bridges. He accused Iranian officials of moving too slowly in negotiations and said Iran would “pay the price”. However, Iran’s President Masoud Pezeshkian responded by calling threats against infrastructure “a sign of desperation.” Dollar Strength and Weak Spot Demand Weigh on BTC Bitcoin’s latest decline comes as the stronger dollar and elevated Treasury yields pressure risk assets. A DXY reading above 100 and a 10-year yield above 4.5% have historically made speculative assets less attractive by tightening global liquidity conditions. Market data also showed weakening U.S. spot demand. The Coinbase Premium, which tracks Coinbase spot prices against Binance futures prices, has remained in discount territory. That suggests U.S.-based institutional buying has faded during Bitcoin’s move toward $60,000. Source: Glassnode Corporate treasury demand has also slowed. Treasury buyers were a strong source of support through April and May, with several days of accumulation above $500 million. Since early June, daily purchases have fallen sharply as Bitcoin moved down from the mid-$70,000 range toward $60,000. More than half of all Bitcoin is now reportedly trading below its purchase price. That measure points to growing stress among holders as BTC continues to trade near its lowest levels in months. Bitcoin Volatility Rises as Traders Watch $60,000 Bitcoin’s drop below its multi-month range triggered a repricing in options markets. One-week at-the-money implied volatility briefly rose above 60% before settling near 50%. The one-month tenor increased from about 34% to 45%. Longer maturities also moved higher, with six-month implied volatility rising from around 40% to 44%. The shift shows that traders are paying more for protection as uncertainty remains elevated. Source: Glassnode The liquidation heatmap showed heavy long leverage between $64,000 and $70,000 before the latest breakdown. That zone was cleared during the selloff, helping push Bitcoin briefly below $60,000 before the market stabilized. With much of the nearby long-side leverage removed, the market structure is cleaner than it was a week ago. However, a durable recovery may require stronger spot demand, a weaker dollar, or lower Treasury yields. For now, Bitcoin’s price outlook remains focused on the $60,000 to $60,500 support zone. A recovery above $62,400 could ease short-term pressure, while a stronger move would require BTC to reclaim the $64,000 to $65,000 area.