Key Takeaways BTC retreated below the $78,000 mark following July’s PCE inflation reading of 3.7%, surpassing the anticipated 3.6% Traditional markets including equities and precious metals e
The leading cryptocurrency fell beneath the $78,000 threshold on Wednesday after U.S. inflation metrics exceeded market projections. This decline affected both digital asset and conventional financial markets simultaneously.
Bitcoin (BTC) PriceJuly’s Personal Consumption Expenditures (PCE) index—the Federal Reserve’s primary inflation measurement tool—registered at 3.7% on an annual basis. Market forecasters had projected 3.6%. The index showed a 0.2% monthly increase, matching the core PCE’s monthly advancement.
Financial commentary platform The Kobeissi Letter highlighted on X that “US inflation remains at approximately twice the Fed’s 2.0% objective.”
BREAKING: US July PCE inflation, the Fed's preferred inflation metric, hits 3.7%, above expectations of 3.6%.
Core PCE inflation was 3.3%, the second highest reading since October 2024.
US inflation continues to run at nearly double the Fed's 2.0% target.
Own assets or be left…
— The Kobeissi Letter (@KobeissiLetter) August 26, 2026
The figures dampened market sentiment that had strengthened after June’s PCE unexpectedly declined, marking the first monthly reduction in six years.
American equity markets opened with losses while gold dropped beneath the $4,600 per ounce threshold after the announcement. Bitcoin experienced daily declines reaching 1% based on TradingView metrics.
Notwithstanding the recent pullback, blockchain analytics provider CryptoQuant indicated that Bitcoin has transitioned into the initial stage of a fresh bull cycle after surging more than 25% since the previous week. The company’s Bull Score indicator leaped from 30 to 80 within seven days—representing its strongest signal since October 2025, when BTC traded near $124,000.
CryptoQuant now shows eight out of ten tracked onchain indicators displaying positive signals.
Julio Moreno, CryptoQuant’s research director, identified $83,000 as the pivotal price point to monitor, corresponding with the current position of the 365-day moving average. Moreno stated that a sustained close above this threshold would represent “official” verification of a new bull cycle.
The analytics firm attributed the recent price appreciation to two macroeconomic drivers: the U.S. Treasury’s initiative to expand long-term bond repurchases to a minimum of $4 billion per operation starting September 9, and President Trump’s statements indicating potential U.S. government consideration of Bitcoin acquisition.
Spot market demand is accelerating at its quickest monthly rate since late December, with both spot and futures demand expanding concurrently for the first instance since early October 2025.
Market commentator Ted (@TedPillows) summarized the situation on X: “$83,000 — should Bitcoin surge past this threshold, the cycle low will be validated, eliminating prospects of a decline to $50,000.”
$BTC move to $50,000 or $100,000 first depends on one level.
$83,000.
If Bitcoin breaks above this, the cycle bottom will be confirmed, and there'll be no dump to $50,000.
Trade with me: https://t.co/kzZIKQsFwfhttps://t.co/YCJ8BuaoUNpic.twitter.com/nBFLK8CDcV
— Ted (@TedPillows) August 26, 2026
CryptoQuant identified short-term overheating conditions. The unrealized profit margin for active traders reached 20.5%, marking the highest level since June 2025—a threshold that has historically preceded profit-taking activity.
Investors with short-term holdings secured $1.2 billion in realized gains throughout the August 20-22 window, featuring a single-day record of $614 million on August 20.
Exchange deposit activity surged notably. Bitcoin deposits approached 53,000 BTC, the largest volume since June 5. ETH deposits climbed to 1.7 million ETH, also matching June 5 levels. XRP whale deposits escalated to 460 million XRP, their peak since February.
Market strategist Rekt Capital cautioned on X that BTC faces the possibility of extending its pattern of descending highs established since October 2025. He pinpointed the 50-week EMA positioned at $77,251 as a crucial level requiring recapture and maintenance. Bitcoin’s most recent monthly closure above this level occurred in October 2025.
Bitcoin is rejecting from the Macro Downtrend
A Monthly Close below the blue resistance would not just solidify another Macro Lower High but would also build a confluent resistance in association with the Macro Downtrend$BTC#Bitcoinhttps://t.co/qBMC4CNkncpic.twitter.com/bws93zlkT9
— Rekt Capital (@rektcapital) August 26, 2026
The PCE release comes one day ahead of the Federal Reserve’s annual Jackson Hole economic symposium, where Fed Chair Kevin Warsh will deliver the keynote presentation on Friday.
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