Bitcoin 
$78,258‘s price fell below $90,000 after the U.S. market opened, awaiting the release of the PCE report at lower levels. The PCE, a key inflation indicator for the Fed, is released with some delay. With a Fed meeting scheduled for the coming week, short-term investors likely engaged in panic selling shortly after the market opened. Additionally, the Michigan reports have just been released.
U.S. Inflation Update
The September PCE report was initially unavailable due to a government shutdown. Now, the delayed report covers the inflation status two months ago, and does not reflect the current situation. Nevertheless, investors reduced their risks in anticipation of unexpected data, causing losses of up to 7% in altcoins.
- U.S. September PCE Announced: 2.8% (Expectation: 2.8% Previous: 2.7%)
- U.S. September Core PCE Announced: 2.8% (Expectation: 2.8% Previous: 2.9%)
Although consensus estimates were lower, some analysts expected PCE to rise as high as 3.1%. However, the figures aligned with the consensus estimates.
Despite reaching the highest level since February 2025, the PCE remaining below 3% is positive. Additionally, it’s favorable that inflation has remained restrained below this level for a considerable time. Today’s figures confirm that inflation is under control, with employment being the main concern. The Michigan 5-year inflation expectation came in below forecast, and the 1-year predictions were also low.
