Bitcoin Slips Below $78K as US Inflation Data Exceeds Expectations

Bitcoin's price slipped below $78,000 on Wednesday following the release of US inflation data that exceeded expectations. The July print of the Personal Consumption Expenditures (PCE) index came in at 3.7% year-over-year, above the anticipated 3.6%. This higher-than-expected reading put pressure on Bitcoin's price.

The PCE data was released a day before the Fed's annual Jackson Hole economic symposium, which could further impact market sentiment. Meanwhile, technology giant Nvidia is set to release its Q2 earnings report today, expected to bring short-term risk-asset volatility.

Market analyst Rekt Capital warned that Bitcoin's recent price action suggests a 'bear market relief rally' may be underway. He pointed out that unless the cycle of lower highs is broken, the rebound could still be classified as a relief rally within the broader bear market.