Bitcoin slipped 0.5% to $78,217.50 by 09:55 ET on Wednesday, retracing from levels above $80,000 reached earlier in the week.
The pullback came as traders positioned ahead of fresh U.S. inflation figures, with the Federal Reserve’s next policy meeting in September in focus. Bitcoin had surged to three-month peaks earlier in the session but gave up gains as macroeconomic uncertainty weighed on risk appetite.
Altcoins showed divergent performance. Ether declined 0.4% to $2,451.44, while XRP dropped 4.6% to $1.3915. Cardano fell 3%, and Dogecoin slid 2.9%. Solana eased 0.7%, though BNB edged up nearly 1%.
The memecoin $TRUMP, tied to political sentiment, fell 3.3% as broader crypto sentiment softened.
U.S. personal consumption expenditures data released Wednesday showed headline PCE steady at 3.7% year-over-year in July, matching June’s reading and slightly above the 3.6% forecast by economists. Month-over-month, headline PCE rose 0.2%, rebounding from a 0.1% decline in June.
Core PCE, the Fed’s preferred inflation gauge, increased 0.2% from June and 3.3% from a year earlier, aligning with both prior annual data and analyst expectations.
The inflation print complicates the outlook for interest rates ahead of the Federal Reserve’s September meeting, where policymakers are weighing the balance between inflation risks and economic growth. Traders also monitored earnings from Nvidia, a bellwether for AI-related demand, as another key driver of market sentiment.
Geopolitical developments, including reports of a potential U.S.-Iran ceasefire and ongoing talks between Iran and Oman over the Strait of Hormuz, added to the cautious backdrop for risk assets.
Bernstein maintained a bullish long-term outlook for Bitcoin, projecting a price of $125,000 by the end of 2026, $150,000 by mid-2027, and a peak near $300,000 in 2029 during the next cycle peak.
