Bitcoin Plummets as PCE Inflation Heats Up - Institutional Investors Cash Out Profits

Digital gold gets a reality check as inflation data triggers sell-off.

Institutional Exodus

Wall Street's crypto darlings are taking money off the table faster than you can say 'risk management.' The PCE inflation spike sent traditional and digital markets scrambling, but Bitcoin took the hardest hit as major players secured gains.

Market Mechanics Exposed

When the going gets tough, the tough get liquid. Institutional profit-taking reveals the uncomfortable truth about crypto's correlation to traditional macroeconomic indicators. Suddenly those 'digital gold' narratives sound awfully familiar.

The irony? Traditional finance institutions fleeing to safety while simultaneously proving crypto's integration into mainstream markets. Maybe Wall Street understands decentralization better than they let on.

What rising inflation means for Bitcoin

With inflation accelerating, the Fed is less likely to stick to rate cuts. This will likely hurt high-growth assets such as bitcoin (BTC), which thrive in a low-interest-rate environment. According to Arthur Azizov, founder and investor at B2 Ventures, this is causing institutional investors to take profits.

“Bitcoin’s drop below $109,000 is a sign that the market is overheated and moving into a slowdown phase. ETF inflows, being the main driver of this rally, have fallen by more than 50% in the past week, with just $930 million coming in compared to over $2 billion the week before,” Arthur Azizov, B2 Ventures told crypto.news.

He added that $108,000 to $108,500 is now the key zone for Bitcoin. A fall below that support could send BTC down to between $90,000 and $95,000.