Bitcoin slips below $78K as hotter-than-expected U.S. inflation pressures markets
Bitcoin fell below $78,000 after the July U.S. Personal Consumption Expenditures (PCE) inflation reading came in slightly above expectations, adding pressure across risk assets.
The Federal Reserve’s preferred inflation gauge rose 3.7% year over year, compared with the 3.6% forecast. On a monthly basis, headline and core PCE both increased 0.2%.
BTC declined as much as 1% on the day, while U.S. stocks also opened lower. Markets are now watching Nvidia’s second-quarter earnings as another potential source of volatility, ahead of the Federal Reserve’s Jackson Hole symposium.
Despite Bitcoin gaining more than 25% over the past week, some analysts remain cautious. Rekt Capital warned that the rebound could still be a bear-market relief rally if BTC fails to break the sequence of lower highs that has persisted since October 2025.
A key technical level is the 50-week EMA near $77,251. Reclaiming and holding above that level, along with breaking the broader macro downtrend, would strengthen the case for a more durable bullish reversal. $BTC
Bitcoin fell below $78,000 after the July U.S. Personal Consumption Expenditures (PCE) inflation reading came in slightly above expectations, adding pressure across risk assets.
The Federal Reserve’s preferred inflation gauge rose 3.7% year over year, compared with the 3.6% forecast. On a monthly basis, headline and core PCE both increased 0.2%.
BTC declined as much as 1% on the day, while U.S. stocks also opened lower. Markets are now watching Nvidia’s second-quarter earnings as another potential source of volatility, ahead of the Federal Reserve’s Jackson Hole symposium.
Despite Bitcoin gaining more than 25% over the past week, some analysts remain cautious. Rekt Capital warned that the rebound could still be a bear-market relief rally if BTC fails to break the sequence of lower highs that has persisted since October 2025.
A key technical level is the 50-week EMA near $77,251. Reclaiming and holding above that level, along with breaking the broader macro downtrend, would strengthen the case for a more durable bullish reversal. $BTC
