Leading cryptocurrency Bitcoin (BTC) has been trading within a certain range after breaking a new record by exceeding $124,000 in mid-August.
While the Fed was expected to cut interest rates for Bitcoin to rise, it never made the expected interest rate cut in June and July.
At this point, interest rate cut hopes have been postponed until September.
Fed Chair Jerome Powell recently signaled a moderate approach to interest rate cuts in his statement in Jackson Hole. Powell noted that the balance of risks has shifted, adding that policy remains in restrictive territory and the changing balance of fundamental outlook and risks may necessitate adjustments to our monetary policy stance.
While the probability of an interest rate cut is priced in at 85%, data on Personal Consumption Expenditures (PCE), which the FED closely follows when making interest rate decisions and is considered a leading inflation indicator, has been released.
Accordingly, personal consumption expenditures data for July were as follows:
Core Personal Consumption Expenditure Price Index (Annual) Announced 2.9%– Expected 2.9%– Previous 2.8%
Core Personal Consumption Expenditure Price Index (Monthly) Announced 0.3%– Expected 0.3%– Previous 0.3%
Personal Consumption Expenditure Price Index (Annual) Announced 2.6%– Expected 2.6%– Previous 2.6%
Personal Consumption Expenditure Price Index (Monthly) Announced 0.2%– Expected 0.2%– Previous 0.3%
What Was Bitcoin (BTC’s First Reaction?
*This is not investment advice.