Bitcoin (BTC) slipped under $78,000 following Wednesday’s Wall Street open after US inflation data came in above expectations.
Key points:
Bitcoin sees further downside after US PCE inflation data came in 0.1% higher than expected in July.Markets await Nvidia Q2 earnings release as Wednesday’s next potential volatility catalyst.BTC price analysis warns over 25% weekly gains forming a bear market relief rally.
Higher-than-expected PCE data pressures Bitcoin
Data from TradingView tracked up to 1% daily BTC price losses, with US stocks also opening lower and gold breaking below $4,600 per ounce.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The downside came after the July print of the US Personal Consumption Expenditures (PCE), known as the Federal Resrve’s “preferred” inflation gauge, hit 3.7% year-on-year, above the anticipated 3.6%.
“From the preceding month, the PCE price index for July increased 0.2%. Excluding food and energy, the PCE price index also increased 0.2 %,” the Bureau of Economic Analysis’ (BEA) official release confirmed.
US PCE index data (screenshot). Source: BEA
Markets appeared disappointed by the results following June’s unexpected drop in PCE gains, which included their first month-on-month decrease in six years.
“US inflation continues to run at nearly double the Fed’s 2.0% target,” trading resource The Kobeissi Letter responded in a post on X.
The PCE numbers come a day before the Fed’s annual Jackson Hole economic symposium, with chair Kevin Warsh due to make the keynote speech on Friday.
Investors are watching for today’s Q2 earnings report from technology giant Nvidia report, anticipated to bring short-term risk-asset volatility. The company is expected to record $92.3 billion quarterly revenue, including CPU revenue that analysts at Raymond James forecast could grow from 3% to 5% of NVDA’s total by 2028, expanding its addressable market.
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