Bitcoin's value has slipped to $104,600 following the release of the US Personal Consumption Expenditures (PCE) data, showing a significant increase in December 2024. This raises concerns about potential market stagnation.
PCE Data and Its Significance
The PCE figures are a crucial measure of inflation for the Federal Reserve. With a current rate of 2.4%, the Fed anticipates reaching the 2% benchmark within the coming two years.
Response to Political Initiatives
Trump’s initiatives to lower energy prices could balance out PCE increases primarily driven by energy expenses. New actions from Trump are expected to be based on forthcoming data to achieve rate reductions.
Future Plans and Their Impact
Market participants predict a rate cut from the Fed by June. Comments from Fed official Bowman further influenced Bitcoin’s downturn, highlighting the need to wait for data before further actions.
Expenditure growth rates continue to pose questions about economic policy and interest rate regulation. However, reactions to the data could lead to new financial decisions in the near future.
