The leading cryptocurrency, Bitcoin, is maintaining its high levels ahead of today's release of U.S. inflation data for Personal Consumption Expenditures (PCE).
As is known, Bitcoin rose from approximately $62,000 to over $80,000 in a very short period. Yesterday, $BTC even surpassed the $81,000 mark, reaching its highest level in the last three months.
Although the market subsequently retreated somewhat, its attention is now focused on the Consumer Price Index (PCE) data, one of the most closely watched inflation indicators by the Fed, as well as on expectations regarding the Fed's monetary policy.
A PCE report lower than expected could reinforce the perception of easing inflationary pressures, supporting expectations that the Fed may pursue a softer monetary policy. Conversely, a PCE report higher than expected could weaken expectations for interest rate cuts, creating short-term selling pressure on Bitcoin.
Thus, the U.S. consumer spending data is critically important for both interest rates and $BTC, and the July consumer spending data, considered a leading indicator of inflation, has been released.
Thus, the data for Personal Consumption Expenditures in July were as follows:
Core Personal Consumption Expenditures Price Index (annual) released: 3.3% – Expected: 3.3% – Previous: 3.3%
Core Personal Consumption Expenditures Price Index (monthly) released: 0.2% – Expected: 0.2% – Previous: 0.1%
Personal Consumption Expenditures Price Index (annual) announced: 3.7% – Expected: 3.6% – Previous: 3.7%
Personal Consumption Expenditures Price Index (monthly) announced: 0.2% – Expected: 0.1% – Previous: -0.1%
*This is not investment advice.
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