Cryptocurrency investors focused on inflation data after this week’s Fed announcements. The recently released PCE data reflects personal consumption expenditures and serves as an inflation indicator monitored by the Fed. The significance of inflation-related indicators has notably increased in the coming period.
Latest PCE Data
The Fed signaled a pause in interest rate cuts due to the risk of stagnation in declining inflation and the strength of employment. Consequently, the BTC price experienced a decline of over 10,000 dollars shortly after. For this downward trend to reverse, we must see an increase in unemployment alongside a decrease in PCE and CPI data.
US PCE
Announced: 2.4%
(Expectation: 2.5 Previous: 2.3)
The data being slightly below expectations is quite favorable. The core PCE figure was released at 2.8%, compared to an expectation of 2.9%. Additionally, the monthly increases were 0.1% lower. Following this data, which may somewhat comfort cryptocurrency investors, we should anticipate several significant developments.
Trump should make a supportive statement following Powell’s challenge to Bitcoin
$
93,857.
Unemployment data should increase.
PCE and CPI data should come in below expectations next month.
The government debt ceiling issue should be resolved for a few hours.
The Fed’s interest rate decision in January will be announced in 40 days, making upcoming data crucial during this period. Futures rate traders maintain their predictions that the Fed will pause interest rate cuts in January while increasing forecasts for a cut in March and another by October.
