The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, cooled to 2.6%, sparking positive sentiment in the crypto market. This data, released by the U.S. Bureau of Economic Analysis, aligns with market expectations and marks a slowdown from the previous 2.7% rate.
Notably, this is the slowest pace of inflation since March 2021, indicating a significant milestone. The CME FedWatch Tool suggests a potential 25 basis points rate cut in September, echoed by Wall Street giants like JPMorgan and Goldman Sachs.
Bitcoin and altcoins, including Ethereum and Solana, showed signs of recovery after a recent selloff. Analysts like Michael van de Poppe predict further consolidation, with altcoins potentially offering higher returns.
Meanwhile, the U.S. dollar index and 10-year Treasury yield have dipped, reflecting market adjustments. The PCE data suggests a stabilizing inflation trend, crucial for future economic policy and market strategies.
