Inflation Data Keeps Yields Bid, Risk Assets Under Pressure
July US PCE inflation came in higher than anticipated, triggering a broad selloff across risk assets including Bitcoin, gold, and equities. The print reinforces market expectations for sticky inflation and potentially higher-for-longer rate policy, undermining the case for near-term monetary easing that crypto markets have priced in over recent months.
Bitcoin's retreat below $78K—down 0.58% over 24 hours—reflects the mechanical relationship between inflation surprises and equity volatility. Stronger inflation data typically extends the timeline for Federal Reserve rate cuts, pushing real yields higher and making non-yielding assets like Bitcoin less attractive relative to duration trades and money-market instruments.
