Bitcoin nears $65,000 as softer June PCE offsets U.S.–Iran risk

Bitcoin traded around $64,500 on Thursday, showing limited immediate reaction to June U.S. Personal Consumption Expenditures inflation data as a rebound in U.S. equities helped steady risk sentiment. TradingView data showed BTC price action centered near $64,500, broadly unchanged from the previous day, while the S&P 500 and Nasdaq Composite rose 1% and 2.3%, respectively, as pressure from an earlier semiconductor-led sell-off eased. The June PCE reading came in at 3.7% year on year, matching market expectations and down from 4.1% in May, which had been the highest print in three years. The Bureau of Economic Analysis said the $65.2 billion increase in current-dollar PCE in June reflected a $58.2 billion rise in spending on services and a $7.0 billion increase in spending on goods. The report marked an end to the recent uptrend in PCE and the first month-on-month decline since 2020, but inflation remained well above the Federal Reserve’s 2% target. That kept market interpretations cautious. The Kobeissi Letter said the 3.7% reading was still the second-highest result since October 2024, while Steve Hanke described inflation as “the genie the Fed just can’t put back in the bottle.” The Federal Reserve left interest rates unchanged on Wednesday, and Bitwise CIO Matt Hougan said Bitcoin may become less sensitive to future rate decisions because expected policy moves are now smaller than the sharp swings seen earlier in Bitcoin’s history. He pointed to CME FedWatch expectations for a 50-basis-point rise over the next year and said Kevin Warsh is likely to favor more modest rate adjustments.