Fed’s Favorite Inflation Gauge Just Hit Its Highest Level Since 2023: What It Means for Bitcoin
BeInCrypto
Bitcoin fell toward $73,300 as April PCE inflation hit 3.8%, signaling persistent inflation and reinforcing the Federal Reserve's "higher-for-longer" interest rate stance.Summary
The latest Personal Consumption Expenditures (PCE) report shows headline inflation reaching 3.8% annually, its highest level since May 2023. Core PCE also rose to 3.3%, significantly outpacing the Federal Reserve’s 2% target.
Following the release, Bitcoin experienced a decline, trading near $73,404. Market data from CME FedWatch indicates a 98.9% probability that the Federal Reserve will maintain current interest rates in June, as persistent inflation pressures continue to discourage immediate rate cuts. Analysts suggest this "higher-for-longer" interest rate environment, coupled with a stronger US dollar and rising Treasury yields, continues to exert downward pressure on non-yielding assets like Bitcoin.
(Source：BeInCrypto)