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Bitcoin and Markets Await Crucial US Inflation Figures
6 Dec
Summary
- US PCE inflation expected at 2.8% headline and 2.9% core.
- Market braces for volatility due to PCE data and options expiry.
- Cooling PCE could influence the Fed's decision on rate cuts.
The cryptocurrency market, including Bitcoin, is on edge as investors await the release of the September US PCE inflation data. Wall Street economists project that headline PCE inflation will remain around 2.8%, with core PCE at 2.9%, suggesting inflation continues to be persistent and remains above the Federal Reserve's 2% target.
This report is the final piece of economic information the Federal Reserve will consider before its upcoming rate decision and the release of its economic projections. Any deviation from expectations, particularly a cooling of inflation figures, could bolster the likelihood of a 25 basis point rate cut. However, the current forecasts indicate inflation is likely to be sticky, adding to market uncertainty.
The anticipation is amplified by the simultaneous expiry of crypto options, potentially leading to increased market volatility. Beyond Wall Street consensus, some data points, like Truflation's figures, suggest inflation may be stabilizing closer to the Fed's target, though core PCE remains higher. This confluence of economic indicators and market events has put both financial markets and digital assets on high alert.
