While Bitcoin and altcoins have been experiencing a recovery process for a while, the BTC price has risen to over $88,000.
However, this recovery declined after the PCE data, which the FED uses to measure inflation and closely follows.
Bitcoin faces renewed inflation pressure after PCE data came in above expectations, with the price falling to $84,000.
Evaluating PCE data, The Kobeissi Letter analysts stated that core inflation is on the rise again and that the current macroeconomic course creates “a perfect recipe for stagnant inflation in 2025.”
However, analysts stated that it was still too early to say anything and pointed to March:
“February PCE inflation, the inflation measure tracked by the Fed, came in at 2.5%, in line with expectations of 2.5%.
Core PCE inflation rose to 2.8%, above expectations of 2.7%.
Core inflation is on the rise again.
While economic growth forecasts are falling, inflation data is coming in hot.
This is the perfect recipe for recessionary inflation in 2025.
In an environment where trade wars continue, March inflation data will be even more decisive.”
$84,000 in Bitcoin is Critical!
While it is a matter of curiosity how Bitcoin, which retreated after the PCE data, will act, popular analyst Michael van de Poppe said that Bitcoin is in an uptrend but $84,000 is critical.
Stating that the BTC price is shaking, Poppe said that a possible drop below $ 84,000 would trigger a drop below $ 80,000.
“The trend for Bitcoin is still upwards, but the price is swinging.
“If we drop below $84,000, I think we will see a test of $78,000-80,000 and maybe lower, then we can bounce back up.”
Trend remains to be upwards for $BTC, but it starts to look slightly less good.
It's shaking.
Drop sub $84K and I think we'll see a test at $78-80K and perhaps lower before we'll bounce back up. pic.twitter.com/nZaweAv9nv
— Michaël van de Poppe (@CryptoMichNL) March 28, 2025
*This is not investment advice.
