PCE Inflation Revisions Put Bitcoin at a Crossroads as Gold and Stocks Surge

CryptoQuant emphasized the significance of the updated data of the PCE inflation of July, August, and September 2025. The new numbers indicate that the inflation is increasing, and September PCE is up to 2.8% per year over year, the highest point since April 2024. This change causes surprises in the speed of monetary loosening and compels the markets to reconsider risk positioning.

Bitcoin is a Long Way Behind its Head

Bitcoin still trades approximately at a third of its all-time high of 123,000, unable to make a comeback as other asset classes gain pace. Continued inflation pressure undermines the argument of aggressive rates cuts that have proven to be beneficial to Bitcoin rallies. The data indicates that there is still unfavourable macro conditions of speculative assets in the short run.

Contrastingly, gold and silver keep on recording new all-time highs. Gold has increased almost 70 percent annually against previous years to reach $4,500, whereas silver has shot more than 134 percent to 69 per ounce. According to cryptoQuant charts, the gold trading is 25 per cent above its 200-day moving average, and silver is 45 per cent above the same parameter. Such extended levels reflect the last time there was such high capital rotation into hard assets was in the 2020 COVID liquidity boom.

Markets Equity Markets Refuse to Break

Traditional risk markets are also strong even as far as inflation is increasing. The S&P 500 is only 1 per cent below the all-time high, and the Nasdaq is trading approximately 3 per cent below the highest point. The same price movement indicates that investors remain optimistic in earnings growth and liquidity situation despite an increase in inflation.

Among the most prominent developments, one should mention shifting correlations of Bitcoin. BTC has been negatively correlated with gold since July and since August has separated with the Nasdaq. This disconnection is an indicator that Bitcoin is no longer a risk asset or a hedge, and it is prone to losses in macro transitions.

The Implication of the PCE Data in the Future

Bitcoin could still fail to perform as well as it should compared to safe havens and equities unless there is a real decline in inflation in future issues. A less aggressive PCE movement would also rekindle Fed-easy hopes and give Bitcoin a second boost. Up to that point, macro pressure is one of the prevailing forces.