Bitcoin's price fell below the $78,000 mark following the release of July's US PCE inflation data, which came in slightly above market expectations. According to CoinTelegraph, this unexpected rise in inflation put pressure not only on Bitcoin but also on gold and other risk assets.
The increase in US inflation data has added caution among investors, prompting a pullback from riskier investments including cryptocurrencies and precious metals. Bitcoin had previously traded above $80,000 before the data release.
For Japanese markets, where investors often watch US inflation closely to gauge global risk sentiment, this development could influence risk appetite across FX and equities as well as crypto assets.