Bitcoin retreated toward $79,000 on Wednesday after a brief rebound failed to sustain gains above $80,000, as traders pared positions ahead of key U.S. inflation data.
The largest cryptocurrency by market value was last quoted at $78,739.70, down 0.2% on the day at 17:27 ET, having touched $80,000 in the prior session. Ether climbed 2.5% to $2,501.98, while XRP fell 3.1% to $1.3952. Solana and BNB rose 0.5% and 1.4%, respectively, while Cardano and Dogecoin slipped.
The pullback follows a recent rally driven by the so-called debasement trade, as investors sought alternatives to the dollar amid expectations that U.S. Treasury actions to stabilize bond yields could weigh on the greenback. Geopolitical optimism, including reports of a potential U.S.-Iran ceasefire and resumed talks between Iran and Oman over the Strait of Hormuz, also supported risk appetite, though oil prices declined on the ceasefire news.
Market focus now shifts to the U.S. Commerce Department’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge. The headline PCE index held steady at 3.7% year-over-year in July, matching June’s reading and slightly exceeding economists’ forecasts of 3.6%. On a monthly basis, the index rose 0.2% after a 0.1% decline in June. Core PCE, which excludes food and energy, increased 0.2% from June and 3.3% from a year earlier, in line with prior estimates.
Analysts at Bernstein maintained a bullish long-term outlook, projecting Bitcoin could reach $125,000 by the end of 2026, $150,000 by mid-2027, and $300,000 at the peak of its next cycle in 2029. Their base case assumes Bitcoin continues to follow its historical four-year cycle, supported by rising fiscal pressures and the debasement trade.
