Bitcoin Stands Firm as US Inflation Data Shows First Monthly Drop in Six Years

The Bitcoin price remained stable on Thursday despite volatility in US stocks, which rebounded after inflation data showed its first monthly drop in six years.

The Personal Consumption Expenditures (PCE) index, considered a preferred measure of inflation by the Federal Reserve, came in at 3.7% year-over-year, matching market expectations.

While this is still above the Fed's 2.0% target, it marks a significant drop from May's reading of 4.1%, which was the highest in three years.

According to Bitwise CIO Matt Hougan, future interest-rate announcements are likely to have less impact on Bitcoin's price performance due to expected modest rate changes.

Hougan cited the CME Group's FedWatch Tool, which predicts a 50bps rise over the next year, as a reason for this expectation.