Breaking: US Inflation Data Comes In At 2.3%, What Next For Bitcoin?

The US personal consumption expenditures (PCE) price index data has come out in line with expectations. This US inflation data is significant, considering the impact that it could have on the Bitcoin price and the broader crypto market.

US Inflation Comes In At 2.3%

The US Bureau of Economic Analysis released the PCE data for October, which showed that inflation rose by 2.3% year over year (YoY), which is in line with expectations. Meanwhile, US inflation increased by 0.2%, similar to the September data, which is also in line with expectations.

Meanwhile, the Core PCE data, which excludes food and energy, showed that inflation increased by 2.8% YoY, which is in line with estimates and up from the 2.7% recorded in September. Month over month, the Core PCE rose 0.3%, which is in line with estimates and similar to the September figure.

As Coingape reported, this US inflation data is one of the macro activities that is in the focus this week, considering its impact on the crypto market. It is worth mentioning that the US Federal Reserve also released its FOMC minutes yesterday. They noted that they would only further cut rates if they were confident that inflation was coming down to their 2% target.

Moreover, this PCE data is the Fed’s favorite inflation indicator. As such, this data will significantly impact their rate-cut decision at the next FOMC meeting, which will hold between December 17 and 18. CME FedWatch data shows that there is a 66.5% chance of a 25 basis point (bps) rate cut at the December meeting.

What Next For Bitcoin?

Following the release of the US inflation data, the Bitcoin price climbed back above $95,000 and is up over 2% in the last 24 hours. The flagship crypto has witnessed a price correction after attempting to reach the $100,000 milestone late last week.

However, despite this recent price correction, crypto analysts like Ali Martinez have said that Bitcoin is still far away from its market top in this bull cycle. This means that the flagship crypto is still likely to reach this $100,000 milestone and even surpass it.

Meanwhile, in an X post, crypto analyst Rekt Capital suggested that Bitcoin is ready for its next leg up. He stated that the crypto dropped to the $91,000 level for a successful picture-perfect retest attempt. With this successful retest, the analyst revealed that this old resistance level has now become support.

This inflation data also presents a bullish outlook for Bitcoin, especially if the Fed eventually decides on another 25 bps. Meanwhile, whales are still accumulating BTC, which is bullish for price. Chinese firm SOS recently announced plans to buy up to $50 million worth of Bitcoin.