BTC Falls Under $78K Amid Stock and Gold Decline Following US PCE Inflation Report
Bitcoin remained distant from the $80,000 threshold as July's US PCE inflation figures exceeded forecasts, creating downward pressure on gold and risk-based assets.
Bitcoin (BTC) dropped beneath the $78,000 level in the aftermath of Wednesday's Wall Street opening session after inflation figures from the United States surpassed market expectations.
Key points:
- Bitcoin experiences additional downward movement following US PCE inflation figures that registered 0.1% above July forecasts.
- Market participants anticipate Nvidia's Q2 earnings announcement as the next potential catalyst for Wednesday volatility.
- Analysis of BTC price movement suggests 25% weekly increases may constitute a relief rally within the bear market.
PCE Data Exceeding Forecasts Creates Pressure on Bitcoin
According to data tracked by TradingView, BTC price experienced daily losses reaching up to 1%, while US equities also commenced trading on a downward trajectory and gold descended below the $4,600 mark per ounce.
The negative price movement occurred following the release of the July United States Personal Consumption Expenditures (PCE) report, recognized as the Federal Reserve's "preferred" measure for tracking inflation, which registered 3.7% on a year-over-year basis, surpassing the projected 3.6% figure.
From the preceding month, the PCE price index for July increased 0.2%. Excluding food and energy, the PCE price index also increased 0.2%.
Bureau of Economic Analysis' (BEA) official release
Financial markets displayed signs of disappointment regarding the results, particularly after June's unanticipated decline in PCE growth, which marked their first decrease on a month-over-month basis in six years.
US inflation continues to run at nearly double the Fed's 2.0% target.
The Kobeissi Letter
The release of the PCE figures arrives one day in advance of the Federal Reserve's annual economic symposium at Jackson Hole, where chair Kevin Warsh is scheduled to deliver the keynote address on Friday.
Market observers are closely monitoring today's Q2 earnings announcement from technology powerhouse Nvidia, which is expected to introduce short-term volatility across risk assets. The corporation is projected to report quarterly revenue of $92.3 billion, with CPU revenue that Raymond James analysts predict could expand from 3% to 5% of NVDA's overall total by 2028, thereby broadening its addressable market opportunities.
Key Price Targets Established by Analyst for BTC Monthly Close
In analyzing the recent price movement, participants in Bitcoin markets directed their attention toward the approaching August monthly candle closure.
Advocating for a measured approach, trader and analyst Rekt Capital cautioned that BTC/USD faced the risk of extending its sequence of lower highs that has persisted since October 2025.
A Monthly Close below the blue resistance would not just solidify another Macro Lower High but would also build a confluent resistance in association with the Macro Downtrend.
Rekt Capital
Rekt Capital further noted that in the absence of breaking the pattern of lower highs, Bitcoin's price recovery throughout the previous week could still be categorized as a "relief rally" occurring within the context of the broader bear market. His analysis highlighted the 50-week exponential moving average (EMA) positioned at $77,251 as an additional trend line requiring reclamation and sustained holding moving forward, with Bitcoin's most recent monthly close exceeding this level occurring in October 2025.
