The leading cryptocurrency, Bitcoin ($BTC), is struggling around $71,000 amid the uncertainty and tension created by the US-Iran conflict.
The war between the two countries has driven up oil prices, indirectly increasing inflation concerns. Analysts worry that inflation, which the US Federal Reserve (FED) has long been trying to bring down to its 2 percent target, may come under renewed upward pressure with this increase in energy prices.
While there is talk that the Fed may delay interest rate cuts or even raise rates in the face of inflation risk, the January data on Personal Consumption Expenditures (PCE), which the Fed closely monitors when making interest rate decisions and is considered a leading indicator of inflation, has been released.
Accordingly, the personal consumption expenditure data for December were as follows:
Core Personal Consumption Expenditures Price Index (Annual) Announced 3.1% – Expected 3.1% – Previous 3.0%
Core Personal Consumption Expenditures Price Index (Monthly) Announced 0.4% – Expectation 0.4% – Previous 0.4%
Personal Consumption Expenditures Price Index (Annual) Announced 2.8% – Expectation 2.9% – Previous 2.9%
Personal Consumption Expenditures Price Index (Monthly) Announced 0.3% – Expectation 0.3% – Previous 0.4%
What was Bitcoin’s ($BTC) Initial Reaction?
*This is not investment advice.