Bitcoin Retreats as US Inflation Data Cools Market Sentiment

Bitcoin's price has pulled back from its recent rally as profit-taking and declining retail interest weigh on the market. The cryptocurrency is currently trading above $78,000 after reaching a high of $81,000 last week.

The US Personal Consumption Expenditures (PCE) inflation rate held steady at 3.7% year-over-year in July, exceeding market expectations of 3.6%. However, the core PCE index remained unchanged at 3.3%, in line with forecasts.

Gold is also retracing its recent gains, testing support at $4,600 as investors evaluate the implications of the US inflation data. The Federal Reserve's monetary policy will be a key focus for market attention this week, particularly ahead of Friday's Jackson Hole central bankers' symposium.