Core PCE Inflation Gauge Indicates Continued Pressure Ahead of Fed Meeting
- Core PCE inflation is expected to rise by 2.9% year-on-year in September, exceeding the Fed’s 2% target for 55 months.
- Volmex’s one-day bitcoin implied volatility index (BVIV) stands at 36%, indicating a 24-hour price swing of $1,688.
- CME’s FedWatch tool predicts a 25 basis point rate cut on December 10.
- Ether’s one-day implied volatility index is at 57.23%, suggesting a potential price movement of $3,000.
- Solana (SOL) and XRP show expected price swings of 3.86% and 4.3%, respectively.
The anticipated rise in core PCE inflation could bolster the stance of Fed hawks advocating for slower rate cuts, impacting market sentiment around cryptocurrencies like Bitcoin and Ethereum.
If the core PCE matches estimates, it may reinforce the current trading range for BTC between $92,000 and $94,000 as markets await further direction from the Fed.(Source)
