Cryptocurrency Market Sees Selloff as Inflation Fears Rise

Bitcoin Price Drops as Hot US PCE Data Analyst Predicts $84,000 Must-Hold

The price of Bitcoin (BTC) has taken a significant hit in recent hours, plummeting by over 5% to trade around $51,000. The sudden decline comes as hot US PCE (Personal Consumption Expenditures) data was released, sparking concerns about the potential impact on the global economy.

According to a top analyst, the current price action is a "must-hold" level for Bitcoin, suggesting that a failure to hold above this point could lead to further losses. The analyst, who has a proven track record of accurate predictions, is warning that a breach of the $51,000 level could trigger a significant correction.

The sharp drop in Bitcoin's price comes as the US PCE data showed a significant increase in inflation, with the index rising by 0.6% in July. This has led to concerns that the Federal Reserve may be forced to take action to curb inflation, which could have negative implications for the cryptocurrency market.

Despite the current volatility, many analysts remain bullish on Bitcoin's long-term prospects. With the asset's market capitalization now exceeding $1 trillion, it is clear that Bitcoin has established itself as a major player in the global financial landscape.

As the cryptocurrency market continues to navigate these uncertain times, investors will be keeping a close eye on developments in the US economy. With the Fed's next monetary policy decision just around the corner, the stage is set for a potentially volatile few weeks ahead.