PCE at 2.8% YoY, Bitcoin Slides After Inflation Print
On Jan. 22, 2026 the U.S. personal consumption expenditures (PCE) price index came in at 2.8% year-over-year, in line with forecasts and underscoring that inflation remains above pre-pandemic norms. As the Federal Reserve’s preferred inflation gauge, a steady PCE print reinforces the case for a cautious policy stance and supports expectations of rates staying higher for longer, a dynamic that matters for risk assets and yield-sensitive markets.
Bitcoin dropped after the release as traders digested the implications for monetary policy and real yields, with BTC trading lower on the day. The reaction highlights crypto’s sensitivity to macro developments; investors should watch upcoming data prints and Fed commentary for direction, as volatility may persist while markets reassess the path of interest rates.