Bitcoin Slumps as Inflation Data and Nvidia Earnings Loom

Bitcoin's price plummeted below $78,000 shortly after the US markets opened as a stronger-than-forecast inflation report weighed on risk assets. The July Personal Consumption Expenditures (PCE) print came in at 3.7%, surpassing expectations of 3.6%. This data has traders parsing what it means for monetary policy and the broader market.

The PCE measure is closely tracked by the Federal Reserve, which is set to deliver a keynote speech on Friday at its annual Jackson Hole economic symposium. As markets react to the inflation signal, Nvidia's upcoming Q2 earnings release is also being watched as a potential catalyst for risk-asset volatility.

Technical analysts are warning that recent strength in Bitcoin may be short-lived, with some viewing the current rebound as merely a relief rally within a larger bear market. The August monthly close will be crucial in determining whether Bitcoin can extend its recovery or remains trapped within a downtrend structure.