The recent report on inflation growth in the US shows an increase in the PCE index, which may influence the Federal Reserve's decisions and the cryptocurrency market.
US PCE Inflation: Key Figures
According to the latest report, the PCE index in the US increased by 0.3% month-over-month and reached 2.6% year-over-year. Analysts had lower expectations at 2.5%. The core PCE index also came in higher than predictions, reaching 2.8%.
Fed's Decision on Interest Rates
Fed Chair Jerome Powell and other committee members decided to keep interest rates unchanged due to rising inflation. Currently, there is only a 39% probability of a rate cut in September, with one cut of 25 basis points anticipated by December.
Crypto Market's Reaction to Inflation Data
The cryptocurrency market reacted to the rise in PCE. Bitcoin and Ethereum showed slight declines. Nearly $400 million in liquidations were recorded, with a significant portion attributed to Ethereum. Altcoins like XRP, Solana, and Dogecoin also saw declines within 1-2%.
Thus, rising inflation in the US and the Fed's decision to maintain interest rates significantly impacts the crypto market, leading to price declines in various cryptocurrencies.
