US PCE Inflation Hits 3.8%, Impacting Bitcoin and Crypto Markets
- The US PCE inflation rose by 0.4% month-on-month in April, aligning with Wall Street estimates.
- Annual headline PCE inflation reached 3.8%, marking the highest level since August.
- Core PCE increased by only 0.2%, falling short of the expected increase of 0.3%.
- Geopolitical tensions, particularly related to the US-Iran conflict, have contributed to market volatility.
- Bitcoin’s price has continued to decline, testing critical support levels amid a bearish market sentiment.
The rise in US PCE inflation comes at a crucial time for financial markets, as traders anticipate future Federal Reserve rate hikes, potentially impacting risk assets like Bitcoin. Major firms such as JPMorgan and Goldman Sachs had predicted a similar inflation reading, indicating heightened inflationary pressures on investments.
Following these developments, Bitcoin is struggling below $77,000 and may test lower support levels in the $60K range as market conditions remain challenging (Source).
