Bitcoin Begins to Recover After Lates U.S. Inflation Report

Bitcoin and other cryptocurrencies experienced significant declines after Federal Reserve Chairman Jerome Powell made hawkish remarks, signaling a continued tight monetary policy.

As a result, Bitcoin dropped below $93,000, before the release of the latest Personal Consumption Expenditures (PCE) data, a key inflation indicator closely watched by the Federal Reserve when making interest rate decisions.

For November, the Core Personal Consumption Expenditure Price Index (YoY) came in at 2.8%, matching the previous month’s figure and falling slightly below the expected 2.9%.

On a monthly basis, the Core PCE Price Index rose by just 0.1%, under the expected 0.2% and lower than the previous 0.3%.

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The overall PCE Price Index, which reflects the general cost of goods and services, increased by 2.4% year-over-year, slightly below the expected 2.5%, up from 2.3% in the prior month.

On a monthly basis, the PCE index showed a 0.1% rise, which met expectations but was a decline from the previous month’s 0.2% increase.

After the inflation data was released, Bitcoin regained some bullish momentum, surging above $97,000, highlighting crypto investors’ long-term optimism.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.