BTC has fallen below $85,000 today, continuing the day with a 2% loss. The price retreated after failing to surpass the $89,000 resistance level. The disappointment of another halt to the upward momentum that began on Monday is disheartening. So, what direction did the U.S. Personal Consumption Expenditures (PCE) data take?
Understanding the U.S. PCE Data
This data is a key inflation indicator monitored by the Fed and bears significant importance. Today, gold prices surged due to excitement over the PCE figures and concerns regarding long-term economic effects of tariffs. In contrast, this situation has led to adverse consequences for cryptocurrencies. Trump and his team are doing little to indicate their intention to avoid a global trade war. Although negotiations continue, their mixed messages have managed to shake up risk markets.
Upcoming Clarity on April 2nd
The day when everything will largely clarify is April 2nd, and in the following 48 hours, retaliatory actions from other countries will at least eliminate uncertainty.
Returning to the PCE data, the expectations and previously announced figures were as follows:
- U.S. PCE Reported: 2.5% (Forecast and Previous: 2.5%)
- U.S. Core PCE Reported: 2.8% (Forecast: 2.7%, Previous: 2.6%)
With data exceeding expectations, the anticipation of a downturn in cryptocurrencies has become evident. As the stock markets open, a decline may gain momentum in the coming hours, urging investors to remain cautious. Although it is a slim chance, the market could surprisingly rally against the fearful trend after months of despair.
