Breaking: PCE Reveal Sees BTC, ETH Rally, Can The Fed “Full Send” It?
The Personal Consumption Index has just been released. It shows a -0.1% MoM change in personal consumption expenditures. The estimates expected no change in the PCE from last month. Therefore, a decrease of 0.1% in PCE is a second straight data that reveals cooling inflation. As a result, a strong crypto rally can be seen.
Bitcoin jumped to cross $21.5K while Ethereum crossed $1.66K. The entire crypto rally is now dependent upon Fed chair Jerome Powell’s speech at the Jackson Hole conference. If Powell takes a dovish stance, expect a strong bullish movement in the crypto market.
The Significance of PCE In Crypto Rally
The Personal Consumption Expenditure index is a measure of the change in prices paid for consumer goods and services. PCE mostly consists of a compilation of household expenditures.
PCE is an important measure of inflation, and will likely be factored in by the Fed in the next month’s interest rate decision.
The Federal Reserve is responsible for controlling inflation. The latest CPI data showed a YoY increase of 8.5%. While the data still shows high inflation, it also reveals that it is cooling. The crypto market saw a strong rally, expecting a dovish Fed or maybe even a pivot from Quantitative Tightening.
The PCE data may also change the minds of some of the hawkish members of the Fed. St. Louis Fed President James Bullard has supported a 75 bps hike. A traditionally dovish Minneapolis Fed President Neel Kashkari also laid down the expectation of a “Volcker-esque” stance.
This low PCE data, after an already lesser than expected CPI, may help to mild down the aggressive Fed.
Can Jerome Powell Help “Full Send” Crypto
Despite the skyrocketing crypto, many traders will still be cautious. By far, the most important event today is Fed chair Jerome Powell’s speech at the Jackson Hole conference. A cautious and dovish Fed can result in a strong bullish movement in the market.
However, an aggressive Powell could dampen down the strong surge after the PCE data.
- BREAKING: Deribit Revises Fee Structure as XRP, Solana Options Go Live on CME
- Trump Family’s Crypto Fortune Explodes as WLFI, MELANIA, TRUMP Tokens Drive $1B Gains
- Bitcoin Options Puts Exceed $1.15B As Negative Bias Jumps to Oct. 11 Crypto Market Crash Levels
- Expert Says A Pi Network Stablecoin PiUSD Could Be A Game-Changer for the Ecosystem
- Dogecoin Gets Major Utility Boost as Trump-Linked Thumzup Prepares DOGE Payments
- Pi Coin Price Gears for Recovery as DEX and AMM Launch Revives Utility Hopes
- Cardano Price Teeters as Whales Exit and Bearish Signal Emerges
- Sui Price Targets $9.5 as Figure Brings SEC-Approved Yield Token YLDS to Sui
- Chainlink Price Eyes $100 as S&P Global Partnership Expands Institutional Adoption
- Solana Price Prediction as Whales Withdraw $169M from Exchanges
- Pro Says Ethereum Price is a Buy Despite Rising Liquidations and BlackRock Selling
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
