Data on Personal Consumption Expenditures (PCE), considered an inflation indicator and a crucial factor for FED's interest rate decisions, has been released. How did Bitcoin respond to this data?
Introduction
Bitcoin and altcoins are trying to recover from sharp declines, with BTC still trading below $90,000 as the first quarter nears its end. With curiosity about Bitcoin's potential 'explosive' movement, data on Personal Consumption Expenditures (PCE), closely monitored by the Federal Reserve (FED) for interest rate decisions, was announced.
PCE Data for January
The personal consumption expenditures data for January were as follows:
- Core Personal Consumption Expenditure Price Index (YoY): Announced 2.8% – Expected 2.7% – Previous 2.6% - Core Personal Consumption Expenditure Price Index (Monthly): Announced 0.4% – Expected 0.3% – Previous 0.3% - Personal Consumption Expenditure Price Index (Annual): Announced 2.5% – Expected 2.5% – Previous 2.5% - Personal Consumption Expenditure Price Index (Monthly): Announced 0.3% – Expected 0.3% – Previous 0.3%
Bitcoin's First Reaction
Following the release of PCE data, discussions about its impact on the crypto market commenced. Bitcoin remains under pressure, though slight price fluctuations are observed amidst the data release.
Bitcoin's reaction to PCE data highlights the cryptocurrency's resilience amid economic policy uncertainty. As inflation expectations and interest rates shift, investors' focus on cryptocurrencies may change.
