Bitcoin's price saw a significant drop following the release of PCE inflation data in the US, raising concerns among investors.
PCE Inflation Data
The personal consumption expenditures (PCE) inflation in the US increased. The core PCE inflation year-on-year rose to 2.7%, above estimates of 2.6%. Month-on-month, it registered a 0.2% increase, also exceeding the 0.1% forecast. The headline PCE inflation year-on-year jumped to 2.3%, in line with estimates but above last month’s revised value.
Bitcoin's Response to News
Following the inflation data announcement, Bitcoin's price fell to around $106,700. The 24-hour low and high were reported at $106,460 and $107,973, respectively. Trading volume declined by 12%, indicating a waning interest among traders.
Analysts' Opinions
Analysts, including Michael van de Poppe, remain bullish about potential future upward movements in Bitcoin’s price. He pointed out that BTC might see slight consolidation before the next breakout, stating, "I assume we’ll see a big breakout to an ATH when we clear $108,500." Additionally, there were updates on tariff changes from Treasury Secretary Scott Bessent, stating that tariffs on China were now 30%, while those on the US were 10%.
The drop in Bitcoin's price amid rising inflation has sparked discussions among experts regarding future trends and potential price recoveries in cryptocurrency.
