Bitcoin Poised for Rally as US PCE Inflation Cools, Potential Fed Rate Cut in September.

The latest report from the US Bureau of Economic Analysis shows a slowdown in the personal consumption expenditures (PCE) inflation rate; This rate decreased from 2.7% to 2.6%. Similarly, annual core PCE inflation decreased from 2.8% to 2.6%, in line with market expectations. This cooling inflation trend is being watched closely as it forms the basis for the Federal Reserve's potential interest rate decisions.

Financial analysts are discussing the possibility of the Federal Reserve cutting interest rates by 25 basis points in September. Fed official Mary Daly acknowledged that cooling inflation data offered positive signs, but emphasized that the Fed's job is not yet done and took a cautiously optimistic approach. However, major financial institutions such as JPMorgan, Goldman Sachs and Morgan Stanley predict that these inflation trends will lead to interest rate cuts later in the year.

Altcoins such as #Bitcoin , #Ethereum and #Solana experienced a significant sell-off with the last options expiry. However, positive inflation data brought some relief to the cryptocurrency market; Bitcoin has managed to hold its ground, avoiding major sell-offs as traders digest the potential for more favorable monetary policies.

Prominent analysts such as Michael van de Poppe predict that Bitcoin will continue to consolidate in the near term. They note that altcoins have a higher return potential compared to Bitcoin, but an early altcoin season is unlikely at this stage. Additionally, Rekt Capital's analysis suggests that Bitcoin is just above a key threshold and could potentially break out of the Bull Flag formation by the daily close.