Today, the US Personal Consumption Expenditures (PCE) index will be released at 4:00, closely monitored by digital currency investors and traders. The PCE index, measuring changes in prices of consumer goods and services, holds significant importance for the Federal Reserve and can influence the central bank’s future decisions on interest rates. Analysts predict the annual PCE rate to remain steady at 2.5%, indicating persistent inflation above the Federal Reserve’s 2% target, making a rate cut in upcoming meetings less likely. However, deeper economic concerns exist among analysts due to Trump’s trade tariffs possibly leading to price hikes and increased inflation. In such a scenario, lowering interest rates for the Federal Reserve could become more challenging, putting additional pressure on financial markets including Bitcoin. According to analysts, it’s unlikely that the PCE data release will serve as a strong bullish catalyst for BTC unless results exceed expectations. Currently, the $90,000 resistance level remains a significant barrier for Bitcoin. Some analysts like Arthur Hayes predict Bitcoin could reach $110,000, but the strong correlation between the cryptocurrency market and the US stock market, along with Trump’s impact on the economy, will continue to cause high volatility and uncertainty in price trends.
