Bitcoin Drops Below $78K Amid Higher-Than-Expected Inflation

Bitcoin's recent rally was short-lived as it dropped below $78,000 after U.S. inflation data showed higher-than-expected Personal Consumption Expenditures (PCE) in July.

The PCE Price Index rose 0.2% month-over-month in July, above the Federal Reserve's target, raising concerns about the Fed's monetary policy and potentially pushing bond yields higher.

This has reduced appetite for volatile assets like Bitcoin, causing it to dip below $78,000 after having rallied strongly in August, nearing $81,000.