Bitcoin Holds Steady as US Stocks Rebound from PCE Data

The Bitcoin price remained stable on Thursday as US stocks rebounded following the release of inflation data. The Personal Consumption Expenditures (PCE) index, which is preferred by the Federal Reserve, showed a monthly drop for the first time in six years.

The June PCE print came in at 3.7% year-on-year, matching market expectations. This was down from May's reading of 4.1%, which was the highest in three years. The decrease was seen as a positive catalyst, with US stocks rising 1% and 2.3% for the S&P 500 index and Nasdaq Composite index respectively.

Despite the decline, PCE remains above the Fed's target inflation rate of 2%. This has raised concerns about inflationary tendencies. Bitwise chief investment officer Matt Hougan forecast that future interest-rate announcements will have less impact on Bitcoin price performance.