Bitcoin price falls under $107K as the US Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) inflation, comes in hot on Friday.
The core PCE inflation YoY, which excludes volatile and energy prices, rises to 2.7% above estimates of 2.6%. And, the core PCE inflation MoM comes in at 0.2%, above estimates of 0.1%.
The headline PCE inflation YOY in the US increased to 2.3%, in line with estimates but above a revised value of 2.2% in the previous month. Similarly, PCE inflation MoM comes in line at 0.1%, the same as in the previous month.
Meanwhile, the personal spending and personal income have also missed economists’ estimates. This will prompt Federal Reserve Chair Jerome Powell to consider rate cuts.
The CME FedWatch tool showed a 72.1% probability for the Fed rate cut in September. The data suggested 75 bps in total rate cuts by the Federal Reserve this year if inflation data and uncertainty in the markets remained stable in the coming months.
Meanwhile, Treasury Secretary Scott Bessent says tariffs on China are now 30%, while Chinese tariffs on the U.S. are 10%.
Bitcoin price fell after the PCE inflation data, with the price currently trading around $106,700. The 24-hour low and high are $106,460 and $107,973, respectively. Furthermore, the trading volume has decreased by 12% in the last 24 hours, indicating a decline in interest among traders.
Analysts including Michael van de Poppe remained bullish on further upside moves in Bitcoin price. pointed out that BTC could see a slight consolidation before the next breakout. He added, “I assume we’ll see a big breakout to an ATH when we clear $108,500.”
