US Inflation: Core PCE Data Below Expectations As Macro Trends Weigh Down Bitcoin
By: bitcoin ethereum news|2025/05/03 16:15:01
0
Share
According to data from the US Bureau of Economic Analysis (BEA), the Federal Reserve’s key inflation measure was hotter than expected in March. The Personal Consumption Expenditures (PCE) price index rose 2.3% from year-ago levels, lower than February’s 2.7% increase. This reading came in higher than anticipated, as Economists forecasted that the index would rise 2.2%. The inflation data comes amid heightened market uncertainty fueled by Trump’s controversial policy moves. Implications of the US March Inflation Reading The Core PCE index, which excludes volatile food and energy prices, fell to 2.6%, which was in line with expectations. Economists expected the PCE price index to cool in March, likely due to falling energy costs as recession fears weighed on oil prices. Their expectations materialized as the costs of Energy goods and related services plunged 2.7% in March. However, food prices saw their most significant jump in months, rising 0.5% from February. The PCE, which is released monthly, is considered to impact Federal Reserve interest rate decisions. Notably, the latest PCE reading signals inflation is cooling, putting rate cut hopes back on the table. The central bank has refused to lower rates this year, after dropping them by 50 basis points in September 2024. A possible rate cut this year would translate into lower borrowing costs on all kinds of loans. Expectedly, this may help relieve pressure on the job market to stay afloat amid disruptions caused by tariffs. While Trump has imposed a 90-day pause on tariffs, uncertainty persists in the market. In addition to the tariff, other policies, including cutbacks in federal jobs and mass deportations, add substantial uncertainty to the economy. How Bitcoin and Other Cryptocurrencies React The economic data released earlier today fully reflected President Trump’s economic agenda. Economic activity contracted for the first time in three years in the first quarter. Bitcoin and other top cryptocurrencies also reacted negatively. The price of Bitcoin, which climbed above $95,000 on Tuesday, has fallen sharply. In the last 24 hours, the value of Bitcoin dropped by 1.2% to $93,776. Top altcoins like Ethereum (ETH), XRP, Solana (SOL), and Binance Coin (BNB) also experienced plummeting prices. Over the past day, these digital assets plunged by 2.8%, 5.9%, 3.7%, and 0.9%. However, the low PCE numbers may drive rate cuts, which often lead to increased volatility in the short term. Typically, the prices of risk assets like Bitcoin rise afterward due to more liquidity in the market and higher investor risk appetite. Why Experts Are Optimistic About a Big Rally Ahead Bitcoin’s latest surge above $95,000 has raised expectations about a significant rally ahead. Bitcoin is gaining traction thanks to institutional interest, increased retail participation, and positive market sentiment. Standard Chartered’s crypto research team, led by Geoff Kendrick, made a bold Bitcoin prediction in a late-April 2025 report. Kendrick’s team targets Bitcoin hitting $120,000 in Q2 2025 and $200,000 by the end of the year. Kendrick noted that investors are shifting capital away from US stocks and bonds toward alternative assets like Bitcoin. He believes this trend could trigger a sharp price surge this spring. Rising inflows into the spot Bitcoin market are another key factor spurring a bullish Bitcoin rally. Source: https://www.thecoinrepublic.com/2025/05/03/us-inflation-core-pce-data-below-expectations-as-macro-trends-weigh-down-bitcoin/
You may also like

Polymarket vs. Kalshi: The Full Meme War Timeline
The topic itself has become a growth engine, and this "flame war" may be their most effective business strategy.

Consensus Check: What Consensus Was Born at the 2026 First Conference?
Just concluded in Hong Kong, Consensus HK 2026 has set the stage for a new narrative this year.

Resigned in Less Than a Year of Taking Office, Why Did Yet Another Key Figure at the Ethereum Foundation Depart?
The Ethereum Foundation once again finds itself at the crossroads of personnel turmoil.

Russian-Ukrainian War Prediction Market Analysis Report
By analyzing transaction patterns, validate the predictive market as a harbinger of truth in the new media order

Ethereum Foundation Executive Director Resigns, Coinbase Rating Downgrade: What's the Overseas Crypto Community Talking About Today?
What Have Foreigners Been Most Interested in the Last 24 Hours?

Who's at the CFTC Table? A Rebalancing of American Fintech Discourse
What on earth is the CFTC up to?
AI Trading vs Human Crypto Traders: $10,000 Live Trading Battle Results in Munich, Germany (WEEX Hackathon 2026)
Discover how AI trading outperformed human traders in WEEX's live Munich showdown. Learn 3 key strategies from the battle and why AI is changing crypto trading.
Elon Musk's X Money vs. Crypto's Synthetic Dollars: Who Wins the Future of Money?
How do Synthetic Dollars work? This guide explains their strategies, benefits over traditional stablecoins like USDT, and risks every crypto trader must know.

The Israeli military is hunting a mole on Polymarket
「The suspect's behavior has posed a significant operational risk and will be charged with serious security offenses.」

Q4 $667M Net Loss: Coinbase Earnings Report Foreshadows Challenging 2026 for Crypto Industry?
Coinbase reports $1.8B in total revenue in Q4 2025, with a $667M loss leading to a sharp drop in stock price.

BlackRock Buying UNI, What's the Catch?
DeFi has transitioned from "Experimental Finance" to "Infrastructure Finance."

Lost in Hong Kong
When yesterday's glory becomes today's shackles, only the courage to break free from the shackles can win tomorrow.

Gold Plunges Over 4%, Silver Crashes 11%, Stock Market Plummet Triggers Precious Metals Algorithmic Selling Pressure?
An analysis suggests that metal prices experienced a sudden drop due to a suspected algorithmic trading sell-off, leading some investors to unwind their positions in commodities including gold and silver to access liquidity.

Coinbase and Solana make successive moves, Agent economy to become the next big narrative
The new war around the Agent On-chain Economy has begun.

Aave DAO Wins, But the Game Is Not Over
The Aave community has achieved a milestone victory on the topics of revenue and governance, but key disagreements regarding the boundaries of funding, branding, and power remain unresolved

Coinbase Earnings Call, Latest Developments in Aave Tokenomics Debate, What's Trending in the Global Crypto Community Today?
What Was Trending Among Expats in the Last 24 Hours?

ICE, the parent company of the NYSE, Goes All In: Index Futures Contracts and Sentiment Prediction Market Tool
TradFi giants are moving into the crypto market at an unprecedented pace.

On-Chain Options: The Crossroads of DeFi Miners and Traders
An Insurance Policy, a Money Printer
Polymarket vs. Kalshi: The Full Meme War Timeline
The topic itself has become a growth engine, and this "flame war" may be their most effective business strategy.
Consensus Check: What Consensus Was Born at the 2026 First Conference?
Just concluded in Hong Kong, Consensus HK 2026 has set the stage for a new narrative this year.
Resigned in Less Than a Year of Taking Office, Why Did Yet Another Key Figure at the Ethereum Foundation Depart?
The Ethereum Foundation once again finds itself at the crossroads of personnel turmoil.
Russian-Ukrainian War Prediction Market Analysis Report
By analyzing transaction patterns, validate the predictive market as a harbinger of truth in the new media order
Ethereum Foundation Executive Director Resigns, Coinbase Rating Downgrade: What's the Overseas Crypto Community Talking About Today?
What Have Foreigners Been Most Interested in the Last 24 Hours?
Who's at the CFTC Table? A Rebalancing of American Fintech Discourse
What on earth is the CFTC up to?