Bitcoin Slips Below $84,000 as Traders Brace for PCE Inflation Data and Micron Earnings

Bitcoin fell below $84,000 on Friday as cryptocurrency traders adopted a cautious stance ahead of the release of the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, and quarterly earnings from chipmaker Micron. The world's largest cryptocurrency by market value slipped under the key psychological level during Asian and European trading hours, reflecting broader risk-off sentiment across financial markets.

The pullback comes after a month of oil-driven rate-hike bets that sent 30-year Treasury yields to their highest since 2002, underscoring investor anxiety over persistent inflation and the prospect of tighter monetary policy. The PCE data, due later today, is closely watched by the Fed as its primary inflation gauge and could heavily influence the central bank's next rate decision. Meanwhile, Micron's earnings are seen as a bellwether for the semiconductor sector, which has significant exposure to crypto mining and broader technology demand.

Market participants are bracing for volatility, with a hotter-than-expected PCE reading potentially reinforcing expectations for further rate hikes and pressuring risk assets like Bitcoin. Conversely, a softer print could provide relief and spark a rebound. Global markets remain on edge, with equity futures and bond yields fluctuating ahead of the data. The next steps hinge on the inflation figures and Micron's guidance, which will shape sentiment across crypto and traditional markets in the coming sessions.