Investing.com-- Bitcoin fell to around $109,000 on Friday following key U.S. inflation data, though the markets continue to expect a Federal Reserve interest rate cut next month, while worries around the central bank’s independence persist.
As of 10:06 ET (14:06 GMT), the world’s largest cryptocurrency last traded 3.8% lower at $109,070.0
It fell to a seven-week low below $109,000 earlier this week, but has rebounded slightly after that.
Still, Bitcoin has fallen more than 10% from an August record peak above $124,000, and was set for its first monthly drop since April.
The token is poised to fall about 6% in August, after four consecutive monthly gains.
Core PCE inflation hits highest level since February
U.S. inflation picked up in July, with the Fed’s preferred gauge showing tariffs are filtering through the economy.
The Commerce Department said Friday that the core personal consumption expenditures (PCE) index, which strips out food and energy, rose at a 2.9% annual rate, the highest since February and up slightly from June.
On a monthly basis, core prices climbed 0.3%, while the broader index increased 0.2% for a 2.6% yearly gain—both in line with forecasts.
The Fed views core PCE as the best guide to underlying inflation.
Markets still expect policymakers to cut rates again at their meeting next month. Fed Governor Christopher Waller signaled Thursday he would consider a larger reduction if labor data weaken further.
Rate cut optimism generally boosts speculative assets like crypto, but President Donald Trump’s attempted firing of Fed Governor Lisa Cook earlier this week dampened risk appetite.
Cook refused to resign and filed a lawsuit challenging the move, saying her removal would undermine the Fed’s independence. The rare clash has unsettled investors wary of political influence over monetary policy.
Bitcoin often comes under pressure during periods of heightened macroeconomic and political uncertainty, despite being promoted by some investors as a hedge.
Trump sons-backed American Bitcoin set for Nasdaq debut in Sept
American Bitcoin, a bitcoin mining company backed by Donald Trump’s sons Eric and Donald Jr., aims to start trading on Nasdaq in early September 2025 via a reverse merger with Gryphon Digital Mining, according to a Reuters report.
Trump sons and the firm’s largest investor, Hut 8, collectively control about 98% of the firm, the report said.
Crypto price today: altcoins fall in tandem with Bitcoin
Altcoins were largely down on Friday, tracking the declines in the world’s largest cryptocurrency.
World no.2 crypto Ethereum fell over 6% to $4,292.43.
World no. 3 crypto XRP declined 5.5% to $2.84.
Solana lost 1.4% to $208.61
Cardano fell over 5%, while Polygon traded marginally higher.
Among meme tokens, Dogecoin slid 4.4%, while $TRUMP slipped 3%.
