PCE Inflation Shakes Markets: Nasdaq Rally Collapses, Bitcoin Falls to New 2026

The Bitcoin (BTC) price fell to about $58,000 on Thursday, its lowest level since September 2024, after hotter US inflation dimmed hopes for near-term Federal Reserve rate cuts.

US stocks slid in tandem, with the Nasdaq 100 erasing an intraday rally. Both markets turned lower after the Fed's preferred inflation gauge rose faster than expected in May.

The Personal Consumption Expenditures (PCE) price index rose 4.1% in May from a year earlier, its highest reading since April 2023. That was up from 3.8% in April, according to the government report. Core PCE, which strips out food and energy, climbed 3.4%.

The figures pointed to a resilient economy rather than a slowing one. Consumer spending rose 0.7% in May, above forecasts, while first-quarter gross domestic product was revised up to 2.1% from 1.6%. Some economists now see room for possible rate hikes instead of cuts.

Under Chair Kevin Warsh, the Fed held its benchmark rate at 3.5% to 3.75% in June and projected higher rates ahead. It tied part of the price pressure to energy supply shocks from the Middle East conflict. That stance has weakened Fed rate-cut hopes across markets, where traders had expected easing this year.

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Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/crypto/articles/pce-inflation-shakes-markets-nasdaq-162024640.html)