Breaking: Bitcoin Price Sees Recovery After US PCE Inflation Data
Investors were eagerly waiting for the U.S. PCE inflation data after the U.S. GDP data showed that the economy had advanced better than the market expectations in the first quarter. Notably, the Personal Consumption Expenditure (PCE) and the Core PCE inflation data are key gauges to track the current inflation level. Besides, these are also key tools that the U.S. Federal Reserve considers while planning their interest rate plans.
US PCE Inflation Soars 2.7%
The recent data by the U.S. Commerce Department showed that the PCE inflation increased 2.7% in April on a YoY basis, in line with the market expectations. Simultaneously, the Core PCE inflation, excluding the food and energy prices, jumped 2.8% over the last 12 months, in line with the market expectations and unchanged from the prior month.
Meanwhile, the crypto market, along with the broader financial sector might get a hit as the inflation still remains hot. Notably, the latest data showed that the inflationary pressure has continued to weigh on the investors’ sentiment.
Besides, the inflation remaining above the central bank’s expectation of a 2% target range has dampened the investors’ sentiment so far. Investors are seeking clarity over potential rate cuts by the U.S. Federal Reserve, as the higher policy rates have dampened the risk-bet appetite of the market participants.
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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