Market News

FED PCE Data Announcement Triggers Bitcoin's Price Fluctuation

Last week, Bitcoin (BTC) reached an all-time high (ATH) of over $111,000 before experiencing a decline to $105,000 due to profit-taking.

This dip was also influenced by comments from US President Donald Trump about China violating trade agreements.

The recent announcement of the Personal Consumption Expenditures (PCE) data, which the FED considers crucial for its interest rate decisions, coincided with these market movements.

The data for April revealed that the Core PCE Price Index (YoY) came in at 2.5%, aligning with expectations yet slightly lower than the previous month's figure of 2.6%.

In terms of monthly data, the Core PCE Index was announced at 0.1%, meeting projections that matched the prior month’s data.

Overall, the Personal Consumption Expenditure Price Index (Annual) was reported at 2.1%, undercutting the expected 2.2% and down from 2.3% in the previous report.

Market reactions were swift, as Bitcoin's price surged to $105,750 immediately following the release of the PCE data.

This reaction suggests that traders are closely monitoring economic indicators that can influence market sentiment and Bitcoin's valuation.

As inflation data remains pivotal, future FED actions will be scrutinized by crypto investors and analysts alike.

Overall, as Bitcoin navigates these economic waters, its response to such financial data highlights its sensitivity to broader economic trends.