Bitcoin and Gold Rally Cools Amid Steady US Inflation

The rally in Bitcoin and Gold has cooled down following the release of US PCE inflation data. The Personal Consumption Expenditures Price Index held steady at 3.7% YoY in July, exceeding market expectations of 3.6%. This news has led to increased profit-taking and a decline in sentiment, causing both assets to retrace their gains.

Bitcoin is currently trading slightly above $78,000, having edged lower after last week's rally and subsequent rejection around $81,000. The decline reflects cooling sentiment amid overheated market conditions and increased profit-taking. Despite this, the Crypto King still maintains a bullish near-term bias as price holds well above key moving averages.

Gold is also retracing its gains, testing support at $4,600 as investors weigh the implications of recent inflation data. The metal's technical outlook remains firmly supported, with buyers retaining control as long as price holds above the reclaimed EMA floor.

The market attention now turns to Friday's Jackson Hole central bankers' symposium, where Fed Chairman Kevin Warsh is anticipated to offer a fresh perspective on the Fed's near-term policy outlook. Rate hike expectations for September continue to fade, with futures markets assigning just a 38% probability of a 25 basis-point move in the next review cycle.