Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces
Highlights
- The U.S. PCE and Core PCE all came in with expectations.
- This still suggests that inflation is still sticky.
- Bitcoin rose above $109,000 following the report release.
The August U.S. PCE inflation data has dropped in line with expectations, although it suggests that inflation remains sticky and way above the Fed’s 2% target. Bitcoin quickly rose on the back of the data release, but has already lost some of these gains.
PCE Inflation Rises In Line With Expectations, Bitcoin Rises
Bureau of Economic Analysis data shows that the PCE index rose to 2.7% year-over-year (YoY) and 0.3% month-over-month (MoM), both in line with expectations. The Core PCE index rose to 2.9% and 0.2%, both also in line with expectations.
However, the YoY August PCE inflation is an increase from the 2.6% in July, while the Core PCE remains the same from July. Notably, PCE is at its highest level since February earlier this year.
The PCE inflation data strengthens the case that Jerome Powell and some Fed officials made earlier this week, as they warned about rushing to make further rate cuts due to rising inflation. Meanwhile, despite this development, the Bitcoin price, which has been on a decline, sharply bounced on the back of the data release.
TradingView data shows that BTC broke above $109,000 and is now trading just under $109,500. The flagship crypto had earlier in the day dropped to as low as $108,713. The inflation data undoubtedly still puts it and the broader crypto market at risk of a further decline.
The PCE inflation data, which is the Fed’s preferred inflation gauge, is the first major macroeconomic data to drop since the Fed made the first rate cut of the year last week. Attention will now turn to the upcoming PPI, CPI, and jobs data, which would also influence the next rate cut decision at the October FOMC meeting.
In the meantime, Fed officials look divided on whether to make further rate cuts or not to end the year. While officials like Powell have lowered expectations of more cuts, others, such as Michelle Bowman and Stephen Miran, are actively advocating for more cuts due to the softening labor market.
- Breaking: $10 Trillion Vanguard Plans to Offer Crypto ETFs to Brokerage Clients
- BlackRock Loads Up on Bitcoin, Files For Premium ETF to Increase BTC Yield
- Best 10 Crypto Cards for 2025
- Expert Projects HYPE Token Upside as Bitwise Files for Hyperliquid ETF With SEC
- Expert Says Crypto ETFs Could Be ‘Death-Knell’ for Treasury Firms MSTR, MTPLF, BMNR, SBET
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Is Ethereum Price Set for a rebound as Whale accumulation Intensifies?
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
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.
