Bitcoin Rises as US PCE Cools to 2.4% and Fed Cuts Interest Rate in June
US Bureau of Economic Analysis The US Federal Reserve (Fed) announced its preferred inflation indicator PCE data for January. PCE rose in the USA 0.3% per month January saw the biggest increase in the last four months, following the 0.2% increase in December. Additionally, the monthly core PCE index, which excludes food and energy, recorded its biggest increase since February last year, at 0.4%.
On the other hand, annual PCE rate dropped to 2.4%It is the lowest level since February 2021, down from 2.6% in the previous month. Like this annual core PCE inflation slowed down for the 12th consecutive month 2.8% From 2.9%.
Wall Street giants such as JPMorgan, Bank of America, UBS, Morgan Stanley, Citigroup, Deutsche Bank, Nomura, RBC, Barclays, Goldman Sachs, TD Securities and Wells Fargo expected inflation to cool further.
Fed Chairman at a time when Wall Street’s forecasts are mostly in line with market consensus Jerome Powell Fed officials, who expect three interest rate cuts in 2024, act cautiously after the CPI, and expect the projected interest rate cuts to occur as of September. The market currently has a 65% chance of a Fed rate cut in June, with March and May off the table. Moreover, CME FedWatch It shows that the probability of a 25 basis point interest rate cut in June is 51%.
The US dollar index (DXY) moved around 104 on Thursday, following increased volatility in the previous session. In line with expectations, a PCE could bet on a rate cut in the first half, which would help Bitcoin price continue its pre-halving rise.
Additionally, US 10-year Treasury yields (US10Y) clawed back some gains around 4.28% after the PCE inflation report offered investors some relief from inflationary pressures and strengthened expectations that the Fed would start cutting interest rates in the second quarter of the year. Bitcoin price moves in the opposite direction to the US treasury yield.
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Bitcoin Price Rise Will Continue After PCE
Popular analyst Michael van de Poppe recommends moving into long positions between $46,000 and $53,000 in case of a correction. Matrixport is warning investors of a potential 15% market correction following Bitcoin’s recent rally above $60,000, although there is no major resistance ahead of the ATH at $68.7K.
BTC price rose rapidly $63,000It’s less than 9% away from $68.7K. The 24-hour low and high are $57,093 and $63,913 respectively. Additionally, the 75% increase in trading volume in the last 24 hours shows that investors’ interest has increased.
Coinglass reported that futures and options open interest (OI) rose to record levels, with total option OI rising over 8% to $33.86 billion. Bitcoin ETFs recorded the largest inflow of $673 million on Wednesday, as spot Bitcoin ETF and FOMO led the rise. The pre-Bitcoin halving continues to push the Bitcoin price to $100,000 as predicted by many experts.
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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