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%.
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.
A well-known crypto analyst is raising concerns that Bitcoin might be following a bearish trajectory similar to 2019 due to a key macroeconomic factor.
MicroStrategy, now rebranded as Strategy, has made another move to expand its Bitcoin holdings, filing with the U.S. Securities and Exchange Commission (SEC) to offer $500 million worth of shares.
The ongoing battle between gold and Bitcoin, often referred to as “digital gold,” has recently seen gold pull ahead in performance.
CryptoQuant CEO Ki Young Ju has warned that Bitcoin’s current market cycle may have already peaked, suggesting that traders shouldn’t anticipate a major rally in the next six to twelve months.