As evidence that US inflation is sticky is met by upward volatility, Bitcoin concludes that negative news is insufficient.
Bitcoin made fast gains at the beginning of Wall Street on May 26 when US macroeconomic data came as a rude surprise.
Bitcoin is ignoring new inflation fears in the United States.
After the day’s Personal Consumption Expenditures (PCE) data indicated its first rises since October 2022, the pair surprisingly rose to near $27,000 on Bitstamp.
Such a score should be adverse for risk assets, such as bitcoin, since it implies that inflation is still a chronic concern that may need greater financial tightening to address.
“As a result, the Fed’s fight against inflation has suffered a significant setback,” financial analysts say.
According to the Kobeissi Letter, “this is a major setback to the Fed’s fight against inflation.” According to Kobeissi, the PCE event is “rapidly shifting” the Federal Reserve’s expectations for interest rate rises.
According to CME Group’s FedWatch Tool, the market now supports a fresh rise in June by a narrow margin, whereas earlier it was more than 80% certain that a stop would occur.Meanwhile, Tedtalksmacro, a financial expert, recognized that the PCE improvements were simply relative.
“US PCE data arrived quickly and exceeded analyst expectations.” However, on a three-month annualized basis, core PCE was far lower—down to 4.2%,” he said.
The notion that the Biden administration was close to striking a debt limit deal, with the deadline approaching in a matter of days, provided markets with some solace.
The S&P 500 and NASDAQ Composite Indexes had climbed by 1% and 1.65%, respectively, at the time of writing.
Michal van de Poppe, the founder and CEO of trading business Eight, then talked directly about Bitcoin and hinted at a further price increase.
Bitcoin price analysis: $20K is in danger if the 200-week trendline is broken.
“That’s step one for Bitcoin, as we reclaim $26,600 and are looking for continuation towards the range highs,” he said of the day’s price action.