US Inflation Data at 2.3%: What Does It Mean for $BTC

The US inflation data has landed at 2.3% YoY, aligning with expectations and setting the stage for significant impacts on Bitcoin and the broader crypto market. Here’s what this means for BTC in the short and long term.

Key Takeaways from the Inflation Report

• PCE Price Index: The Personal Consumption Expenditures (PCE) data shows a 2.3% YoY increase, consistent with forecasts, while monthly inflation rose 0.2%, matching September’s figures.

• Core PCE: Excluding food and energy, Core PCE climbed 2.8% YoY, slightly up from 2.7% in September, with a 0.3% monthly increase.

These numbers are significant as the PCE data is the Federal Reserve’s preferred inflation gauge and will heavily influence rate-cut decisions at the upcoming FOMC meeting on December 17–18. Current projections show a 66.5% chance of a 25 bps rate cut.

What’s Next for Bitcoin?

Following the release of the inflation data, Bitcoin rebounded above $95,000, gaining over 2% in the past 24 hours. While BTC recently corrected after approaching the $100,000 milestone, analysts maintain a bullish outlook:

• Market Top Still Far: Analyst Ali Martinez suggests that Bitcoin has yet to hit its peak in this bull cycle, indicating potential for BTC to surpass $100,000.

• Successful Retest: According to Rekt Capital, Bitcoin successfully retested the $91,000 level, turning previous resistance into support, signaling readiness for its next upward move.

Bullish Indicators for BTC

• Rate-Cut Potential: A 25 bps rate cut could fuel further BTC gains, with the Fed leaning toward easing monetary policy.

• Whale Accumulation: Large investors continue to buy Bitcoin, with Chinese firm SOS announcing plans to purchase up to $50 million worth of BTC.

• Global Demand: Amid inflationary pressures, Bitcoin’s role as a hedge against fiat continues to strengthen, driving institutional and retail interest.

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