Bitcoin Reacts as U.S. PCE Inflation Data Comes In Line With Expectations
Highlights
- Bitcoin has rebounded above the psychological $80,000 level.
- This follows the September PCE inflation release.
- The inflation data came in at 3.6%, in line with expectations.
Bitcoin has climbed back above the psychological $80,000 level following the release of the PCE inflation data. The September data came in line with expectations, although inflation concerns persist amid the uncertainty over the U.S.-Iran war.
Bitcoin Climbs as September PCE Comes In Line With Expectations
The BTC price rose to as high as $81,000 following the September PCE release, with the inflation data coming in line with expectations. The leading crypto continues to see significant volatility and is currently trading at just above $80,000, down on the day, according to TradingView data.
Bitcoin and the broader crypto market continue to trade in a tight range as inflation concerns persist due to Middle East uncertainty. According to the latest U.S. Bureau of Economic Analysis release, the PCE index rose by 3.6% year-over-year (YoY) and by 0.5% month-over-month (MoM).
Although in line with expectations, the yearly figure is notably higher than the 3.4% increase in August. The latest inflation release comes just as the Fed held rates at its October FOMC meeting despite acknowledging that inflation remains elevated.
Bitcoin had briefly surged on the back of the Fed rate decision yesterday. It also climbed on the back of reports that U.S. Vice President J.D. Vance had reached out to Iran to restart peace talks but retraced as President Donald Trump played down these reports.
Odds Of a December Rate Hike Falls
The odds of a December Fed rate hike have slightly fallen amid the release of the PCE inflation data, representing a positive for Bitcoin and the broader crypto market. Data from the top crypto prediction market platform Polymarket shows a 78% chance that the Fed will hike rates in December by 25 basis points.
Meanwhile, there is a 20% chance that the Fed will keep rates unchanged. However, these odds could still very much change before then with the release of more inflation data such as the CPI and PPI data.
Meanwhile, the U.S. November midterm elections could also prove significant for Bitcoin and the broader crypto market. Democrats potentially taking over Congress could reshape crypto policies and serve as a huge setback to the CLARITY Act potentially passing.
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