While Bitcoin (BTC) dropped to $63,400 during the week, it started to recover yesterday evening and rose above $67,000 again.
While a greater rise in Bitcoin is expected, data on Personal Consumption Expenditures (PCE), which is closely followed by the FED when making interest rate decisions and is considered a leading inflation indicator, has been announced.
Accordingly, all data announced regarding personal consumption expenditures in June were as follows:
Core Personal Consumption Expenditures Price Index (Annual) Announced 2.6% – Expected 2.5% – Previous 2.6%
Core Personal Consumption Expenses Price List (Monthly) Announced 0.2% – Expected 0.2% – Previous 0.1%
Personal Consumption Expenditures Price Index (Annual) Announced 2.5%– Expected 2.5%– Previous 2.6%
Personal Consumption expenditures Price Index (Monthly) Announced 0.1% – Expected 0.1% – Previous 0.0%
What Was Bitcoin's Initial Reaction?
Interest Rate Cut Expectations Continue!
While it is now certain that the FED will make its first interest rate cut in September following positive inflation data, it is thought that an interest rate cut in July will be premature.
According to CEM FedWatch, the probability that the FED will keep interest rates constant on July 31 is priced at 93.3%, while the probability of an interest rate cut in September is priced at 87.7%.
*This is not investment advice.
