Bitcoin surges then fluctuate as U.S. PCE data meets forecasts
Bitcoin moved higher in response to U.S. consumer expenditure statistics, before giving up these gains as the market absorbed the most recent economic data.
Personal consumption expenditures (PCE) for the month of March were in line with the pre-release consensus estimate of 0.5%. In September, the yearly change in PCE was 6.2%.
The price of Bitcoin reached $20,280 after the announcement. The largest cryptocurrency by market capitalization had a short increase, followed by a decline, and then a further increase. Indicators of the economy have influenced crypto prices during the previous several months.
PCE assesses the prices paid for products and services by U.S. consumers and those purchasing on behalf of others. The index measures the inflation or deflation of a variety of consumer items.
It is seen as the Fed’s favoured measure of inflation due to its ability to capture changes in consumer behaviour, so providing a more complete picture of inflation than the consumer price index (CPI). In September, the Consumer Price Index was 0.4% higher month-over-month and 8.2% higher year-over-year.
The economic indicator for today follows GDP statistics from yesterday that exceeded expectations. President Joe Biden said that the U.S. economy increased by 2.6% in the third quarter, contradicting “doomsayers'” claims that the economy was underperforming.