Bitcoin steady near $64,500 as PCE posts first monthly drop

Bitcoin traded near $64,500 on Thursday after the US Bureau of Economic Analysis reported that June personal consumption expenditures inflation fell month-on-month for the first time since 2020 and stood at 3.7% year-on-year.

Equity markets rose in the US session, with the S&P 500 up about 1% and the Nasdaq Composite up about 2.3%. Cryptocurrency prices were largely unchanged from the previous day, with bitcoin price action concentrated around $64,500, according to market data.

The BEA reported current-dollar personal consumption expenditures increased by $65.2 billion in June. The agency attributed the rise to a $58.2 billion increase in spending on services and a $7.0 billion increase in spending on goods. The BEA said the increase in current-dollar personal income mainly reflected gains in compensation, personal income receipts on assets and government social benefits, partly offset by a decline in farm proprietors’ income.

Market observers noted the June PCE print met expectations but remained above the Federal Reserve’s 2% inflation target. A market commentary noted the 3.7% result was the second-highest since October 2024. Johns Hopkins economist Steve Hanke described inflation as “the genie the Fed just can’t put back in the bottle.”

The Federal Reserve left its policy rate unchanged at its recent meeting. The CME Group’s FedWatch Tool prices in about 50 basis points of additional tightening over the next 12 months. Matt Hougan, chief investment officer at Bitwise, forecast that bitcoin will become less sensitive to future Fed rate announcements, arguing that future rate changes are likely to be more modest.

Bitcoin’s price on Thursday remained largely unchanged from the previous day amid the slower month-on-month inflation reading and steady policy expectations.