BREAKING: The Fed’s PCE Data Used to Measure Inflation Has Been Released! What Was Bitcoin’s (BTC) Initial Reaction?

The leading cryptocurrency, Bitcoin, continues to experience sharp declines due to factors such as the Fed’s hawkish stance, successive outflows from spot ETFs, decreased liquidity during the summer months, and the expiration of quarter-end options on June 30th.

While expectations are rising that a deal between the US and Iran could bring lasting peace to the Middle East, concerns about energy price inflation persist.

At this point, the Fed, as expected, kept interest rates unchanged in June as well.

While the Fed is said to be prepared to decide in either direction in the face of inflation risk, Wall Street investors have begun betting on the possibility of a Fed interest rate hike this year following hawkish signals from the Fed.

As expectations of interest rate hikes increase, the May data on Personal Consumption Expenditures (PCE), which the Fed closely monitors when making its interest rate decisions and is considered a leading indicator of inflation, has been released.

Accordingly, the personal consumption expenditure data for May were as follows:

Core Personal Consumption Expenditures Price Index (Annual) Announced 3.4% – Expected 3.4% – Previous 3.3%

Core Personal Consumption Expenditures Price Index (Monthly) Announced 0.3% – Expectation 0.3% – Previous 0.2%

Personal Consumption Expenditures Price Index (Annual) Announced 4.1% – Expected 4.1% – Previous 3.8%

Personal Consumption Expenditures Price Index (Monthly) Announced 0.4% – Expectation 0.5% – Previous 0.4%

What was Bitcoin’s (BTC) Initial Reaction?

*This is not investment advice.