Bitcoin (BTC) aimed for a local low on March 28 as US inflation figures exceeded expectations.
As per data from various sources, BTC/USD reached around $85,500 when the Wall Street market opened but subsequently experienced a downturn. With a decline of over 3% for the day, the pair hit lows beneath $84,500 on Bitstamp, representing its lowest point since March 23. The February reading of the US Personal Consumption Expenditures (PCE) Index indicated a rise in inflation, contrasting with the previous month’s figures.
Although the month-on-month and year-on-year PCE rates matched market predictions at 0.3% and 2.5%, respectively, their core PCE numbers surpassed expectations by 0.1%. A trading resource noted that “core inflation is rising again,” mentioning that January’s figures were also revised upwards. They claimed that the current economic trends could set the stage for “stagflation in 2025,” adding, “March inflation data will be even more telling as the trade war intensifies.”
In terms of BTC’s price movements, it seemed to momentarily dismiss the inflation alert, yet market participants were braced for volatility.
A popular trader remarked, “With PCE data on the horizon, it’s likely to be a turbulent day in the markets.” Others expressed skepticism about the resilience of the broader crypto market, suggesting that Bitcoin hadn’t completely emerged from uncertainty, despite maintaining levels above $80,000 for several weeks.
One analyst stated, “The trend for BTC remains upward, but conditions are beginning to look slightly less favorable. If it dips below $84K, I believe we could see a test around $78-80K, and potentially lower, before recovering.”
Another trader highlighted that while recent price action might imply a temporary surge, the larger context did not yet support the notion of a sustained bull market. They summarized the situation by stating, “With decreasing volatility, current circumstances appear to align more closely with a standard market cooldown. We might be nearing a seasonal reset, potentially echoing the well-known ‘sell in May and go away’ pattern.”
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