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Bitcoin (BTC) price reacts to US macro data
Alex Dovbnja
Bitcoin experienced minimal volatility following the release of key US economic data
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The personal consumption expenditure (PCE) price index. expert an increase of 0.25% in April. The 12-month change was 2.75%, the lowest level in three years.
This is in line with analysts’ expectations, which is why Bitcoin’s reaction is somewhat muted. The largest cryptocurrency is currently trading at $67,446 after failing to hold above the $68,000 level.
Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, suggested that members of the Federal Open Market Committee (FOMC) should already start their rate-cutting mechanisms.
However, former Federal Reserve Vice Chairman Roger Ferguson suggested that the Federal Reserve could raise rates again if inflation continues to persist.
In fact, if inflation remains at 2.7%, maybe it reaches 2.6% but doesn’t seem to be decreasing, perhaps it will be time to think about raising rates again,” says former Federal Reserve vice president Roger Ferguson.
According to the latest PCE Relationship, medical care, housing and travel remain the key drivers of inflation.
At the same time, consumer spending is already showing some signs of stress. It actually declined slightly when inflation is taken into account.
Capital Economics says a 0.1% drop in real consumption was a real surprise. It has now cut its GDP forecast to just 1.2%.
“Our forecast for consumption growth in the second quarter ranges from 3.5% to just 2.1%. [and] our forecast for second quarter GDP growth, which was 2.7% a couple of weeks ago, is now just 1.2%.”
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.