US PCE Inflation Continues to Increase by 2.7%, Bitcoin Stabilizes At $64,000

Key Points:

• Bitcoin steadies above $64,000 as US PCE inflation surpasses expectations, with March’s rising 0.5% and yearly inflation hitting 2.7%.
• Anticipation grows over US PCE inflation data amid economic worries, fueled by disappointing Q1 US GDP figures.
• Despite recent corrections, Bitcoin shows resilience with a 1.14% increase.

The cryptocurrency market is showing relative stability following the release of US Personal Consumption Expenditures (PCE) inflation data, with Bitcoin hovering above $64,000.

Bitcoin Holds Firm Above $64,000 Amid US PCE Inflation Continues To Increase

The US PCE inflation data, a key indicator monitored by the Federal Reserve for interest rate decisions, revealed a 0.5% increase in March, surpassing market expectations.

On a yearly basis, US PCE inflation surged to 2.7%, exceeding February’s 2.5% rise and market forecasts of 2.6%. Core PCE inflation, excluding food and energy prices, rose 0.3% monthly and 2.8% annually. PCE, which differs slightly from the Consumer Price Index (CPI), focuses on services and goods separately, offering a nuanced view of inflation trends.

Market Sentiment Dampened: Anticipation Rises Over Economic Figures

The anticipation surrounding US PCE inflation data intensified amid concerns over economic performance, particularly after the release of disappointing US Gross Domestic Product (GDP) figures for the first quarter, impacting global market sentiment.

Bitcoin, currently trading at $64,145, has seen a 1.14% increase in the last 24 hours. The cryptocurrency is undergoing a correction phase after its record high of $73,780 last month.

The market’s stability amid inflationary concerns shows investors’ confidence in cryptocurrencies as a hedge against traditional market volatility. However, the evolving economic landscape and regulatory developments continue to influence digital asset markets, with recent disputes between crypto companies and the SEC.