- The cryptocurrency markets are eagerly awaiting the U.S. Personal Consumption Expenditures (PCE) inflation report set to be released on Friday.
- Market volatility has been observed as investors brace for the upcoming economic data.
- Notable declines have been recorded among major cryptocurrencies, with Bitcoin (BTC) investors particularly cautious.
Stay updated with the latest developments in the cryptocurrency market as the U.S. PCE inflation report looms, potentially impacting Bitcoin and other major digital assets.
Bitcoin Investors Warn of Pullback as U.S. Inflation Data Approaches
Several major cryptocurrencies have experienced declines, prompting warnings from investors about potential further drops in Bitcoin (BTC) prices. Over the past 24 hours, some of the largest cryptocurrencies have lost up to 5% in value. Meme coins Shiba Inu (SHIB) and Dogecoin (DOGE) led the market downturn, each losing approximately 5%.
Market Reactions and Investor Sentiment
Additionally, XRP, Solana’s SOL, and BNB Chain’s BNB have each fallen by 2%. Bitcoin, after a brief recovery to $70,000 earlier in the week, is now testing the $67,000 support level. Ethereum (ETH), which saw significant gains last week following favorable regulatory decisions, has also dropped by more than 5% since Monday.
According to the trading desk at Japanese crypto exchange bitBank, stronger-than-expected consumer sentiment and weak Treasury sales are exerting pressure on Bitcoin prices. In an email, bitBank stated, “The price is unlikely to show a clear direction until the U.S. PCE announcement on Friday, which could be a make-or-break event for Bitcoin.”
bitBank further noted, “If the inflation data comes in hotter than expected, Bitcoin could relinquish about half of its gains from the past two weeks and fall to around $65,000.”
FxPro senior market analyst Alex Kuptsikevich echoed this sentiment, outlining possible scenarios: “In the most bearish scenario, the price could drop to $60,000. A more optimistic scenario could see a decline to the $65,000 area, where the 50-day moving average is located.”
Conclusion
As the cryptocurrency market braces for the upcoming U.S. PCE inflation report, investors are closely monitoring potential impacts on Bitcoin and other major digital assets. The data could significantly influence market sentiment and price movements, making it a critical event for traders and investors alike. Stay tuned for further updates and analysis as the situation unfolds.
