Bitcoin Falls Below $78K as Inflation Data Rattles Markets, Gold Slides Too

Bitcoin dropped below $78,000 shortly after Wednesday’s Wall Street open, following a July inflation reading that came in slightly above forecasts.

The Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation measure, rose 3.7% year-over-year compared to expectations of 3.6%. On a monthly basis, both the headline and core readings increased 0.2%, according to the Bureau of Economic Analysis.

Risk Assets Take a Hit Together

The disappointing data weighed on more than just crypto. US stocks opened lower and gold dropped below $4,600 per ounce as investors reassessed expectations following June’s surprise inflation slowdown, which had marked the first monthly decline in six years.

Traders Watch for Next Catalyst

With Bitcoin pulling back roughly 1% on the day, attention now turns to Nvidia’s upcoming quarterly earnings release as the next potential source of market volatility. Some analysts have also flagged that Bitcoin’s recent weekly gain of more than 25% may reflect a relief rally within an ongoing bear market rather than a full trend reversal.

Tags: Bitcoin price today, PCE inflation report, Federal Reserve inflation data, gold price drop, crypto market news, Bitcoin technical analysis, US stock market, Nvidia earnings