Bitcoin's value is struggling due to tighter economic conditions in the United States. The recent inflation figures caused a significant drop in BTC prices, plummeting from $63,446 to $60,763 within just a few hours.

Recent data from the University of Michigan revealed a decline in consumer sentiment, dropping to 67.4 in May from 77.2 in April, the lowest in six months. Inflation expectations for the upcoming year also rose to 3.5%, hitting a six-month high, while the five-year outlook reached 3.1%.

Additionally, cautious remarks from Federal Reserve officials added to the pressure. Fed's Lorie Logan mentioned significant upward risks to inflation and emphasized the need for policy flexibility, while Federal Reserve Governor Bowman highlighted the importance of maintaining policy stability for an extended period.

In just one hour, the crypto market saw over $50 million liquidated, with Bitcoin experiencing a more than 4% decline, dropping to an intraday low of $60,690. Ethereum and other altcoins also fell by 2-4%, raising doubts about the market's recovery later in the year.

According to Coinglass data, over $150 million were liquidated across the crypto market in the last 24 hours, with $90 million in long positions and nearly $60 million in short positions. Notably, the largest single liquidation order, valued at $3.56 million, occurred on Binance.

Bloomberg's senior commodity strategist Mike McGlone noted the volatility of the crypto market, highlighting its inverse relationship with the US dollar index (DXY) and Treasury yields. As both the DXY and Treasury yields rose, reaching 105.40 and 4.504% respectively, Bitcoin's value declined to $60k, prompting a selloff in the crypto market.

In conclusion, Bitcoin's sharp decline in value can be attributed to various factors including tightening economic conditions, inflation concerns, cautious remarks from Federal Reserve officials, and a broader selloff in the crypto market driven by rising US dollar index and Treasury yields.