Breaking: US PCE Inflation Rises To 3.8%, Bitcoin Extends Decline

U.S. PCE inflation for April rose 0.4% month-on-month and 3.8% year-on-year—matching Wall Street estimates and marking the highest headline PCE since August 2023. Core PCE rose 0.2% m/m (3.3% YoY). The hotter-than-expected inflation reinforced hawkish Fed expectations (CME FedWatch pricing ~100bps of further hikes by 2027), denting risk appetite. Bitcoin extended its decline after the release, failing to clear the $77,000 level and testing key support; analyst Michaël van de Poppe warned that a break could send BTC toward the low $60,000s while also noting potential for a rebound. The report pressured stocks, gold and altcoins, widening downside risk across crypto markets.