US Inflation: Core PCE Data Below Expectations As Macro Trends Weigh Down Bitcoin

By: bitcoin ethereum news|2025/05/03 08:15:01
0
Share
copy
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/

-- Price

--

You may also like

Should You Buy Bitcoin Now? What the Data Says After a 50% Pullback

Should you buy Bitcoin now? Explore Bitcoin's nearly 50% pullback, ETF outflows, on-chain data, Strategy's BTC sale, and historical trends to assess whether July 2026 is a buying opportunity.

Founder of Baixing.com: I believe half of the statement that large language models devour everything

The internet has been shouting for so many years about devouring everything. Has it really devoured everything now? Is it the internet that devours everything, or is it the large models that devour everything? Both are devouring, and nothing is left?

A "legal" robbery? Attackers emptied the BonkDAO treasury by buying tickets

Handing over the keys to the vault to a public vote where "anyone can spend money to participate," without sufficient oversight mechanisms, even the most legitimate governance ideals may turn into the most convenient tools for attackers.

How has Binance's stock business performed in the 30 days since its launch?

Emerging market buying supported the first wave of demand.

WEEX P2P now supports BDT & LKR—Merchant Recruitment Now Open

To make crypto deposits easier, WEEX has officially launched its P2P trading platform and continues to expand fiat support. We're excited to announce that the Bangladeshi Taka (BDT) and Sri Lankan Rupee (LKR) are now available on WEEX P2P!

Morning News | SK Hynix officially launches the marketing promotion process for its U.S. stock listing; the Central Cyberspace Administration announces the results of the first phase of rectifying AI application chaos, with over 14,000 non-compliant pr...

July 6 Market Important Events Overview

Contents

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com