Bitcoin Sinks Below $78K as PCE Inflation Data Surges

Bitcoin price fell below $78,000 after US inflation data revealed higher-than-expected personal consumption expenditures (PCE) in July. The PCE index rose to 3.7% year-on-year, above the anticipated 3.6%, and 0.2% from June's reading.

Investors were disappointed by the results, which come ahead of the Federal Reserve's annual Jackson Hole economic symposium. Trading resource The Kobeissi Letter noted that US inflation continues to run at nearly double the Fed's 2.0% target.

Nvidia's upcoming Q2 earnings report is expected to bring short-term risk-asset volatility, with investors watching for the company's quarterly revenue and CPU growth predictions.

Rekt Capital, a trader and analyst, warned that Bitcoin's recent price action may be forming a bear market relief rally. He urged caution, noting that a monthly close below $77,251 would solidify another macro lower high and build resistance in association with the broader downtrend.