On August 26, bitcoin org
bitcoin org Event OrganiserTechnologyPayment solution Followers : 0 View profile (BTC) surged as recent economic statistics from the United States fueled expectations that the federal reserve federal reserve Multinational Investment Bank Followers : 0 View profile might change course.
The action was a sudden about-face for Bitcoin, which had been under selling pressure hours earlier as markets anticipated indications from Fed Chair Jerome Powell’s remarks at the Jackson Hole conference. Ethereum surpassed $1,660 while Bitcoin surged to $21,500.
The Personal Consumption Index was made public and it displays a change in personal consumption expenses of -0.1% MoM. The estimates assumed that the PCE would remain unchanged from last month.
Consequently, a drop in PCE of 0.1% is a second straight data point that shows slowing inflation. A significant crypto rally can be seen as a result.
The Jackson Hole conference address by Fed chairman Jerome Powell will now determine the course of the entire crypto rally. The cryptocurrency market is likely to surge sharply in favor of bulls if Powell adopts a dovish attitude.
PCE a Crucial Indicator?
The Personal Consumption Expenditure Index tracks changes in the cost of products and services for consumers. The majority of PCE is made up of a collection of household expenses. The PCE is a crucial indicator of inflation, and the Fed will probably take it into account when deciding on interest rates next month.
Inflation management is the responsibility of the Federal Reserve. The most recent CPI statistics revealed an 8.5% YoY increase. The data indicates that although inflation is still high, it is falling. The price of cryptocurrencies rose sharply as investors bet on a dovish Fed or perhaps a shift away from Quantitative Tightening.
Some of the hawkish members of the Fed may change their opinions in response to the PCE statistics. James Bullard, president of the St. Louis Fed, has backed a 75 bps increase. Neel Kashkari, the normally dovish president of the Minneapolis Fed, likewise established the expectation of a “Volcker-esque” approach.
The aggressive Fed may be calmed down by these weak PCE numbers, which come after an already weaker than anticipated CPI.