July US PCE inflation rose 3.7% year-on-year, above the 3.6% estimate, weighing on Bitcoin and risk assets.
Bitcoin fell below $78,000 as US Personal Consumption Expenditures inflation data for July came in higher than expected. The core PCE index rose 0.2% month-on-month and 3.7% year-on-year, surpassing the 3.6% consensus forecast.
The print reversed June’s unexpected decline, which had included the first month-on-month drop in six months. Markets had anticipated a softer reading, fueling a sell-off in equities, gold, and cryptocurrencies. Gold prices also dipped below $4,600 per ounce.
Traders now await Nvidia’s Q2 earnings report as the next potential volatility catalyst for risk assets.