Tomorrow will be a Friday of high volatility for bitcoin

Inflation data in the United States could cause sharp movements in the price of financial assets.

Bearish and bullish factors are seen for the bitcoin market.

The core PCE index is one of the most accurate measures of inflation.

Future interest rate cuts (or not) may relate to these metrics This Friday, September 27, the US PCE will be published, something that could bring volatility to the markets, including bitcoin (BTC). The report will be released at 8:30 AM New York time (12:30 PM UTC time).

The PCE (personal consumption expenditure price index) calculates the changes in the prices of goods and services consumed by households. In this way, it provides a more accurate view of inflation than the CPI (consumer price index), which measures a series of specific elements. In addition, the core PCE will also be published, which excludes two volatile components (food and energy), which gives a more precise perspective. Therefore, this measure is monitored by the Federal Reserve (Fed), the Central Bank of the United States, to define monetary policy.

Stock and bitcoin prices are often impacted by inflation reports, so it is key for traders to take it into consideration. In addition, markets are being influenced by data that glimpse US economic development in the face of risks raised by the cooling of the labor market.

Therefore, a volatile day is to be expected for the market, either down or up depending on how the result is seen. According to the survey by the Investing platform, the annual PCE is expected to fall from 2.5% to 2.3%, as shown below.