According to the report from the U.S. Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) inflation has increased to 2.3%. This change has influenced the cryptocurrency market.
US PCE Inflation Data
Data released by the U.S. Bureau of Economic Analysis shows that the year-over-year PCE inflation rose from 2.2% to 2.3%. Core PCE inflation, which excludes volatile food and energy prices, increased to 2.7%, exceeding analysts' expectations of 2.6%. Month-over-month growth was 0.1%, while core inflation rose by 0.2%.
Wall Street Expectations on Inflation
Nick Timiraos, chief economics correspondent at the Wall Street Journal, noted that experts expect stable movements in core inflation indicators in the coming months. Major financial institutions, including Goldman Sachs and Bank of America, predicted a PCE inflation rise to 2.3%. The reasons for the inflation increase were cited as U.S. tariffs and recent regional conflicts.
Bitcoin Price Reaction
Following the inflation report, Bitcoin's (BTC) price slipped below $107,000, reaching $106,679. Analyst Michael van de Poppe suggested that BTC price might see some consolidation before the next increase. Additionally, the analysis identified significant liquidation clusters around the current price level, which traders should take into account.
The increase in PCE inflation to 2.3% has led to shifts in the cryptocurrency market, particularly regarding Bitcoin's price. Traders' expectations remain high despite current volatility.
