June PCE inflation fell to 3.7% year-on-year, matching forecasts and easing pressure on Fed policy expectations.
Bitcoin traded steady at $64,500 after US personal consumption expenditures inflation data showed its first monthly decline in six years. The June PCE print came in at 3.7% year-on-year, down from May’s 4.1%, aligning with market expectations and reducing immediate Fed rate-cut concerns.
The data marked a shift from a three-year high in May, though inflation remains above the Fed’s 2% target. Equities rallied alongside crypto, with the S&P 500 up 1% and the Nasdaq gaining 2.3%, as semiconductor stock sell-offs eased during the US session.
Analysts suggest Bitcoin’s sensitivity to Fed policy may diminish over time, though near-term volatility persists amid broader risk-asset trends.