Bitcoin holds near $64,500 as US PCE inflation falls to 3.7%
Bitcoin traded steadily around $64,500 following the release of June US Personal Consumption Expenditures data, which fell to 3.7% year-on-year. The print matched market expectations and marked the first month-on-month drop in PCE inflation in six years. A recovery in technology stocks provided additional support to risk assets. Analysts noted that inflation remains well above the Federal Reserve's 2% target, while Bitwise predicts Bitcoin will become less sensitive to future rate decisions.
Key takeaways
- 1US PCE inflation cooled to 3.7% year-on-year in June, matching market forecasts.
- 2Bitcoin price action stabilized around $64,500 as broader stock markets staged a relief rally.
- 3Bitwise asset management expects Bitcoin to show diminishing sensitivity to Federal Reserve interest rate adjustments.
Coins in this story
Why it matters
Easing macroeconomic friction reduces short-term downside risks for digital assets, though persistent inflation above target limits aggressive monetary easing. Investors should monitor whether crypto decouples from traditional interest rate expectations.
Discussion
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