cryptocurrency Investors set their sights on inflation data following this week’s Fed statements. The PCE data just announced shows personal consumption expenditures and is known as the inflation indicator followed by the Fed. In the coming period, the importance of inflation-related indicators has increased much more.
PCE Data Latest Minute
The Fed signaled a pause in interest rate cuts due to recent statements and the risk of a pause in the decline in inflation and the strength of employment. Then, the BTC price soon dropped by more than $10,000. In order for this process to be reversed, we must see a decline in PCE and CPI data along with an increase in unemployment.
- USA PCE Announced: 2.4% (Expected: 2.5% Previous: 2.3%)
It is extremely good that the data came even slightly below expectations. Core PCE data was announced as 2.8% against the expectation of 2.9%. Moreover, monthly increases were 0.1% lower. We should see a few more important developments after this data, which will provide some relief to cryptocurrency investors.
- Trump, Powell’s Bitcoin $94,806.6He should make a statement of support after the rest.
- Unemployment data should increase.
- PCE and CPI data should come in below expectations next month.
- For a few hours the government debt ceiling issue should be resolved.
The January Fed interest rate decision will be announced in 40 days and the data coming in this process is very important. While futures interest rate traders maintained their predictions that the Fed will pause interest rate cuts in January, they increased their predictions that it will cut interest rates in March and make another cut by October.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
