Crypto:
30251
Bitcoin:
$66.266
% 0.13
BTC Dominance:
%54.5
% 0.21
Market Cap:
$2.38 T
% 1.77
Fear & Greed:
74 / 100
Bitcoin:
$ 66.266
BTC Dominance:
% 54.5
Market Cap:
$2.38 T

Bitcoin Trades Flat as US Core PCE Inflation Remains Steady

Hong Kong Spot Bitcoin Etfs

Bitcoin remained largely unchanged as the U.S. Personal Consumption Expenditures (PCE) inflation held steady at 2.7% on a yearly basis in April. Despite the steady inflation rate, equity indices gained in pre-market trading, renewing hopes that the end of the higher-for-longer interest rate regime might be near.

Bitcoin‘s price showed a modest increase of 0.7% over the past 24 hours, trading at $68,738 as of 9:26 a.m. ET.

The U.S. Bureau of Economic Analysis reported on Friday that the PCE Price Index remained unchanged at 2.7% year-over-year in April, aligning with economists’ expectations. This steady inflation print led to gains in stock futures, with the Dow Jones Industrial Average futures up 0.2%, S&P 500 futures rising 0.3%, and the NYSE Composite increasing by 0.32% in pre-market trading.

Inflation Remains Persistent

Despite the positive response from equity markets, Nansen.ai Principal Research Analyst Aurelie Barthere cautioned that inflation remains persistent. Barthere noted that the market has already priced in two Federal Reserve rate cuts for 2024 but warned of sustained downside risks if the high-rate regime persists.

“A growth slowdown would not be positive for crypto. In the meantime, we’re tactically constructive on crypto but alert to signs of weak growth,” Barthere said.

The analyst’s comments highlight the delicate balance between optimistic market reactions to steady inflation and the underlying concerns about prolonged high interest rates and their potential impact on economic growth and the cryptocurrency market.


You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

Rate this post
READ:  Red Night in Cryptocurrencies

Leave a Reply

Your email address will not be published. Required fields are marked *