Bitcoin dips below $78K as stocks, gold fall on higher US PCE Inflation data

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.