The post Bitcoin (BTC) Price Awaits for a Larger Move: Will PCE Rates be the Catalysts? appeared first on Coinpedia Fintech News
Bitcoin price is trading within a stagnant trend and consolidating below $20K for over a month, failing to breach these levels. Moreover, the volatility has squeezed to its maximum in the past couple of days due to which the price is not able to rise above $16,900 too. The RSI also sliced through the lower trend line and was unable to regain the levels. In the meantime, the market participants speculate a substantial uptick any time from now.
After the Consumer Price Index(CPI) and the FOMC rates, the markets may receive a significant boost with the Core Personal Consumption (PCE) which is expected to be better than before. BTC price nowadays has been heavily dependent on the macro data and the decision of the U.S Federal Reserve.
After the recent CPI data did not impact the markets as expected, which was largely neglected by the FED chair Jeremy Powell. The speculations of the ransomware attack on Haver Analytics are hovering around and hence this may be the major reason for their negligence.
A popular analyst at Funstart writes,
“We think core PCE inflation will be 0.10% compared to Cleverland Fed inflation NOW forecast of 0.26%. Any figure below 0.4% would make the #FOMC figure of 4.8% too high”
“If tomorrow’s core PCE is 4.5% or lower (~75% chance), the entire hawkish FOMC repricing is blown out – no way 4.8% core PCE in December, SEP/Dots repriced and terminals rate tumbles,”
How may this impact the Bitcoin (BTC) price?
The PCE rates are believed to be fruitful for the crypto space and to be so, the rates have to be lower than the FED’s expectations which may completely wipe out the bearish sentiment. This may display the inflation to be well in control due to which the FED may be forced to revise their predictions and take up a more dovish stand in the coming meetings.
If the PCE rates are less than expectations, it may weaken the dollar strength which may ring the alarm signals for the star crypto. Presently, the BTC price is trading around $16,800 at the moment. If the price is able to rise beyond $17,000 it may spike high to test $17,400 else drop towards the support at around $16,400.