Bitcoin falls to six-week low as US inflation hits 2023 high

Bitcoin dropped to six-week lows on Thursday as the latest US inflation reading came in at its highest level since 2023, signaling renewed pressure on risk assets and marking a notable shift from the recent momentum that briefly pushed the market's largest digital asset above its previous cycle peak.

The core Personal Consumption Expenditures (PCE) price index—the Federal Reserve's preferred inflation gauge—rose to its hottest annual pace in nearly two years, dashing expectations that the disinflation trend had resumed. The hotter-than-expected print reignited concerns that monetary easing could be delayed further, weighing on assets sensitive to liquidity conditions.

Bitcoin has entered what analysts describe as a "cooldown phase" below the $75,000 level, with on-chain metrics showing signs of "active distribution"—a pattern typically indicating longer-term holders are selling into strength rather than accumulating. This dynamic often precedes periods of consolidation before the next directional move.

Despite the pullback, market participants remain divided on the longer-term trajectory, with bulls pointing to institutional adoption and upcoming supply dynamics, while bears cite macroeconomic headwinds and the potential for prolonged elevated rates. Volatility in the sector has picked up as traders reassess Fed expectations in real time.