The latest government data showed that the US PCE inflation came in at 2.5% in July, unchanged from the previous month’s figure and down from the market expectations. The lower-than-expected figures have sparked discussions over a potential rally in Bitcoin and altcoin prices.
The global financial market was eagerly waiting for the data, as it is set to influence the US Fed’s rate cut decisions. Notably, this is the preferred metric considered by the central bank to gauge inflationary pressure in the nation.
US PCE Inflation Cools To 2.5%
According to the Commerce Department report, the latest US PCE data showed that the inflation came in at 0.2% in July, up from the 0.1% rise noted in the prior month. On a year-over-year (YoY) basis, the inflation came in at 2.5%, down from the Wall Street estimates of 2.6%, fueling market optimism.
Simultaneously, the Core PCE index, which excludes the food and energy prices, showed that it also rose 0.2%, showing no change from the June figures. On the other hand, the Core PCE, on a YoY basis, showed that the inflation stood at 2.6%, unchanged from June’s figures and down from the market estimates of 2.7%.
Although the latest data showed that the inflation remains unchanged on a YoY basis, it comes in below the market estimates. Having said that, it appears to have boosted the investors’ sentiment, cementing bets over a potential rate cut by the US Federal Reserve at their September meeting.
Bitcoin & Altcoins To Rally?
The latest cooler-than-expected US PCE inflation figures have given another reason for the US Fed to start trimming the policy rates at their upcoming meeting. Previously, the US Fed Chair Jerome Powell hinted at a potential rate cut at their upcoming gathering, if the inflation stays within their estimated level.
According to the CME FedWatch Tool, there are 69.5% odds over a 25 bps rate cut by the US central bank in September. Notably, following the release, St. Louis Fed President James Bullard gave an optimistic outlook over a potential Fed rate cut next month. In addition, in a recent CNBC interview, Bullard also said that he expects the central bank to announce two more rate 25 basis points cuts in November and December meetings.
However, the market was still somewhat volatile following the release, with the crypto market noting a slight recovery. BTC price was down 1.2% in a 24-hour time frame but noted some recovery in the last hour to trade at $59,624. Bitcoin has touched a one-day low of $58,707.62.
Simultaneously, ETH price also witnessed a reversing trend in the one-hour time-frame and traded at $2,525. Additionally, most other top altcoins also traded made some recovery following the US PCE data, especially after heavy volatile pressure dominated the crypto market this week.
However, despite the inflation coming in below the Wall Street estimates, the US 10-year Bond Yield was up 0.45% to 3.880. Simultaneously, the US Dollar Index was also up 0.16% to $101.440.
The post Breaking: Bitcoin & Altcoins To Rally As US PCE Inflation Comes In At 2.5% appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed