Core PCE announced in the US, Bitcoin rose: What does it mean?

The core personal consumption expenditure data (PCE) for August in the USA has been announced. PCE, which is one of the data that the Fed pays the most attention to regarding the course of inflation, has been low and below expectations at a level not seen since February 2021.

The core PCE, which is one of the data that the US Federal Reserve (Fed) pays attention to the most to determine the level of inflation, has been announced. In August, core personal consumption expenditures (PCE) increased by 2.2% year-on-year. The expectation was 2.3%. While the monthly increase level was 0.1%, the expectation here was 0.2%.

Can there be more discounts?

The core PCE, which excludes energy and food prices, is generally known for offering a more stable and realistic trend of inflation. Energy and food prices, which are very quickly affected by geopolitical developments, can also cause inflation to be excessively volatile both downwards and upwards. Therefore, the core PCE can offer a more “realistic” perspective.

The fact that the core PCE is lower than expected may mean that inflation pressures have fallen further in the USA. This situation may cause the Fed to move more comfortably in interest rate cuts in the coming months. Thus, more increases in risky assets such as Bitcoin can be seen.

There is an increase in Bitcoin

After the announcement of the core PCE data, the rise in Bitcoin continued. The largest cryptocurrency rose to $65,960 and stood at the $66 thousand threshold.