PCE Inflation Sounds Hot at 2.5%, Will Bitcoin Price Drop?
PCE, the US Federal Reserve’s preferred inflation indicator, is hot for February but in line with market forecasts. US Bureau of Economic Analysis. We are now officially seeing an increase in CPI, PPI and PCE inflation. Meanwhile, the Bitcoin price remains under pressure ahead of Fed Chairman Jerome Powell’s speech later today.
PCE inflation slows in the US 0.3% per month in February, following a 0.4% increase in January. Additionally, the monthly core PCE index, which excludes food and energy, was 0.3%, slowing from the 0.5% increase in the previous month.
On the other hand, annual PCE rate increased to 2.5% With 2.4%, it reached the lowest level since February 2021. annual core PCE inflation came in line with the predictions 2.8%, down from 2.9% last month.
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 predicted that inflation would decrease in the coming months. But JPMorgan Chase CEO Jamie Dimon said the Fed would likely need to wait longer, after June, before cutting interest rates.
Fed Chairman at a time when Wall Street’s forecasts are mostly in line with market consensus Jerome Powell We expect three interest rate cuts in 2024. CME FedWatch It shows that there is a 61% chance that the Fed will cut interest rates in June and May is off the table. Additionally, the probability of another 25 basis point interest rate cut in September is 49%.
The US dollar index (DXY) has been on a continuous rise since the beginning of the month, rising above the 104.50 level on Friday. Separately, US 10-year Treasury yields (US10Y) clawed back some gains around 4.20% after the PCE inflation report offered investors some relief from inflationary pressures and strengthened expectations that the Fed will start cutting interest rates soon. Bitcoin price generally moves in the opposite direction to the US dollar and US treasury yield.
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Bitcoin Price Rises to $75K After $15 Billion Options Expiration
The crypto market saw the largest Bitcoin and Ethereum options expiry, with leading crypto derivatives exchange Deribit paying out over $15 billion in BTC and ETH options.
BlackRock says investors are ‘overwhelmingly’ focused on Bitcoin compared to other cryptocurrencies. Bitcoin ETFs continue to see large daily inflows, with 182.8 million net inflows on Thursday. GBTC outflows are also falling as FTX and Genesis sell their holdings.
Additionally, top analyst Markus Thielen predicts that the Bitcoin price will rise above $100,000 and reach $140,000 after the Bitcoin halving. In his last post on X, he said that a potential 12% rise in the cryptocurrency is expected in April. The prediction was based on Bitcoin’s historical performance in April.
BTC price has been fluctuating and the price is currently trading at $69,434, down 1.79% from the day’s high. The 24-hour low and high are $69,076 and $71,063 respectively.
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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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