Market Reaction to US Economic Indicators

Bitcoin and Ethereum extended losses on Friday as investors reacted to fresh US inflation data and retreated ahead of the long weekend.

Key Economic Data Points

The Bureau of Economic Analysis reported personal consumption expenditures (PCE) rising 0.5% in July, with the PCE price index up 0.2% monthly and 2.6% annually, matching expectations. The figures seemed to reinforce concerns that the Federal Reserve may keep interest rates elevated, weighing on risk assets.

Adding to the weaker mood, the University of Michigan's final August report showed the Consumer Sentiment Index falling 6% from July to 58.2, marking a 14.3% decline compared with the same month last year.

Cryptocurrency Price Movements

Bitcoin (BTC) plunged 3.62% to $108,498.882 at 10:31 am ET, while Ethereum (ETH) tumbled 5.01% to $4,285.7133.