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The US Personal Consumption Expenditures (PCE) inflation numbers for February have been released, showing a steady trend in headline inflation but a slight uptick in core inflation. Bitcoin and altcoins have extended losses further from earlier today as BTC slips under $85,000, while Ethereum (ETH) tanks 7% slipping under $1,900. Current trend shows that investors could expect strong volatility over the weekend.
US PCE Data Shows Inflation Remains Sticky
As per the Bureau of Economic Analysis, the US PCE inflation data remained unchanged at 2.5% for the month of February, aligning with the market expectations and the previous month’s reading. However, the year-over-year core inflation came hotter-than-expected at 2.8%, higher than both the previous reading of 2.6% and the expected 2.7%.
This shows that sticky inflation could be a major concern for the US Federal Reserve, while preventing it from pivoting towards quantitative easing (QE). This is bad news for risk-ON assets like US equities, Bitcoin, and the overall crypto market moving ahead.
Source: Bureau of Economic Analysis
Bitcoin Dip To Continue Further?
Following a rejection at $89,000, Bitcoin price movement is seeing a pullback once again with the cryptocurrency moving closer to the daily CME Gap zone identified earlier, according to Rekt Capital.
The analyst added that the CME Gap area, between $82,000 and $85,000, serves as a key region for potential support retests. On the other hand, BTC has just begun to test this range, which could serve as a foundation for further bullish continuation if successfully held.
Source: Rekt Capital
However, breaking under this trendline could open the gates for a Bitcoin price crash to $70,000, as highlighted by veteran trader Peter Brandt. The impact of core US PCE inflation rise needs to be watched for now.
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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