Bitcoin (BTC)USA PCE (Personal Consumption Expenditures) It rose slightly after the price index came in slightly lower than economists had predicted in September.
Bitcoin rallied after a US government report last month showed that an inflation gauge closely watched by the Fed was rising more slowly than anticipated.
FED’s Inflation Indicator Rises Less Than Expected, and Bitcoin (BTC) Rises
Monthly personal consumer spending (PCE) in line with consensus prior to release. 0.5% took place as Annual change in PCE in September 6.2% it happened.
Bitcoin (BTC) price surged to $20,500 in the minutes after the report.
Bitcoin, along with US stocks and other assets seen as risky, has been moving lately on speculation about whether the Fed will soon abandon its escalating disinflation operation.
The central bank tightens monetary policy to cool the economy in a bid to slow the pace of consumer price growth, and higher interest rates continue to make risky assets less attractive.
PCE Index in the last 12 months 6.2% increased by the Fed 2% It is still well above its target. The index is prepared by the US Department of Commerce Bureau of Economic Analysis.
Another inflation indicator produced by the Department of Labor’s Bureau of Labor Statistics, the Consumer Price Index is usually released a few weeks before the PCE each month and is watched much more closely by economists and the wider public.
The latest CPI report, published on October 13, showed that the index rose by 8.2% in September, faster than expected, approaching the highest level in the last four decades. After this report, the price of Bitcoin dropped.
*Not investment advice.
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