NewsletterCrypto Market In The Red With PCE Data News; End Of Rally For Now?
Crypto News Today: Crypto prices and the US stock futures dropped in response to the news of stronger than expected rise in prices in January 2023. The core personal consumption expenditure (PCE) price index is key to the Federal Reserve‘s estimation of inflation rate in the US economy. In line with the views of the Fed’s Board of Governors that the ongoing interest rate hikes are appropriate, the PCE index for January rose 0.6%. Hence, the cryptocurrency market reacted bearishly to the hot PCE inflation numbers over fears of more rate hikes in coming months.
Also Read: Polygon (MATIC) Gaining Steam Among ETH Whales Ahead Of zkEVM Launch
The Dow Jones futures fell by 1.4% while the S&P 500 and Nasdaq futures too dropped sharply after the release of the price rise data. Even Bitcoin (BTC) price fell sharply in reaction to the news, with a dip of around 1%.
Bearish Or Bullish For Crypto?
The US Commerce Department reported that personal consumption expenditures excluding food and energy increased 0.6% in January, and was up 4.7% from a year ago. The market expectation for the PCE index was for a reading of 0.5% rise in January.
In the wake of recent macro announcements, the BTC price has been in close correlation with S&P 5oo Index, which is dominated by the technology stocks. This explains the crypto market reaction to PCE inflation data. However, trends from the peak bear market in 2022 showed crypto prices recovering to bullish recovery after important macro announcements like the Fed’s rate hike. Hence, the current scenario could perhaps be a case of bear trap leading to the weekend.
Also Read: Ark Invest CEO Cathie Wood Bullish On Coinbase’s Base Layer-2 Blockchain, Buys More COIN
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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Market Rebounds Ahead of Key U.S. PPI, Jobless Claims, and Fed Inflation Reports
- JPMorgan Faces Heavy Backlash from Grant Cardone, Jack Mallers, Max Keiser, Other Bitcoin Advocates
- Expert Projects $30M Volume for Franklin Templeton XRP ETF as Trading Begins Today
- Bitcoin Bounces as Jerome Powell Could Push for Another Fed Rate Cut: Barclays Research
- Dogecoin Set for Big Week as Grayscale DOGE ETF Launches Today
- BTC Price Prediction: Bitcoin Crosses $86k, Is a Drop Over?
- Here’s Why XRP Price Will Hit $3 This Week
- Zcash Price Soars 10% as OKX Eyes ZEC Relisting
- WLFI Price Soars 17%: What’s Fueling the Surge?
- Dogecoin Price Eyes $0.2 Rally Ahead of Grayscale’s NYSE ETF Debut on November 24
- Crypto Market Eyes Major Rebound as Fed Rate Cut Chances Rise to 71%
