Bitcoin Stays Near $78k After US PCE

Bitcoin Stays Near $78k After US PCE

Bitcoin was marginally higher on Wednesday, quoted at $78,739.7, a 0.2% increase, after having surged past the $80,000 mark in the prior session. The modest rise came as market participants took a breather following fresh data that showed the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, held steady in July.

The U.S. Commerce Department reported that the overall PCE price index rose 0.2% from June, reversing a 0.1% decline in the previous month. Year‑on‑year, the index was up 3.7%, unchanged from June and marginally above economists’ 3.6% forecast. Core PCE inflation, which excludes food and energy, also increased 0.2% month‑on‑month and 3.3% year‑on‑year, matching both the prior annual reading and expectations. These figures suggest that price pressures remain persistent, giving Federal Reserve officials another reason to proceed cautiously ahead of their September policy meeting.

The rally in Bitcoin was largely attributed to the “debasement trade,” where investors anticipate that Treasury measures to calm a spike in bond yields will weaken the dollar, prompting flows into speculative assets such as Bitcoin, other cryptocurrencies, and gold. Optimism surrounding a reported U.S.–Iran standoff de‑escalation further supported risk‑on sentiment; a Russian media report indicated a cease‑fire agreement between the two nations, oil prices fell, and encouraging comments from Pakistan alongside renewed Iran‑Oman talks over the Hormuz Strait added to the risk‑off reversal.

Bernstein analysts projected that Bitcoin could reach $150,000 by mid‑2027 and about $300,000 by 2029, assuming the cryptocurrency continues its historical four‑year cycle. Their base case forecasts a price of roughly $125,000 by the end of 2026, $150,000 by mid‑2027, and $300,000 at the peak of the next cycle in 2029, driven by higher government debt and borrowing costs that may push policymakers toward currency‑weakening measures.

In the broader crypto market, altcoins displayed mixed performance. Ether (ETH) added 2.5% to $2,501.98, while XRP fell 3.1% to $1.3952. Solana and BNB rose 0.5% and 1.4% respectively, whereas Cardano slipped 0.8%. Among memecoins, Dogecoin dipped 0.5% while $TRUMP climbed 1.5%; the MAGA memecoin surged 67.97%.

The article was contributed by Vahid Karaahmetovic and Anuron Mitra.