Expected Data From USA: Here’s Bitcoin’s (BTC) Reaction!

The US Core Personal Consumption Expenses Index (PCE) was announced as 4.4. (Exp. 4.4%)

Monthly data was announced as 0.3%, in line with expectations.

How Did Bitcoin React to the US Data?

bitcoin The price reacted to the development with a bullish response at first, but later dropped to its pre-data level:

Graph showing the reaction in BTC price with the data announced at 16:30.

Inflation, as measured by the Personal Consumption Expenditure (PCE) Price Index, fell to 5% year-on-year in December from 5.5% in November, the US Bureau of Economic Analysis reported on Friday.

In the US, the cost of goods and services rose by as little as 0.1% in December, giving another sign that inflation has subsided, leaving the US Federal Reserve to stop raising interest rates soon.

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According to the PCE index, the data the FEd prefers to use, the inflation rate has fallen sharply since last summer. Falling oil prices have played a large part in this, but inflation is trending more broadly.

Annual rise in prices fell 5.5% the previous month and 7% last summer, down from a 40-year high to 5% in December, according to new US government data.

While this is the smallest rise in the last 15 months, it is still well above pre-pandemic levels where annual inflation was below 2%.

The more closely watched core index rose modestly 0.3% last month, in line with Wall Street’s forecasts.

In the last 12 months, the increase in the core inflation rate decreased from 4.7% to 4.4%. This is also the lowest level in the last 14 months.

*Not investment advice.

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