Bitcoin, Altcoins Rebound As US Inflation Cools: Downtrend Over?
U.S. inflation data has injected new optimism into bitcoin and the wider cryptocurrency market. In January, personal consumption expenditure (PCE) inflation, the Fed’s preferred measure) happened to meet expectations, to 2.5%. The reported core PCE inflation rate is 2.6%, which also matches the forecast, marking the first decline in PCE inflation since September 2024.
Bitcoin and altcoins see the ease of inflation data
up to date data Confirm the year-on-year and stable performance in the month. Title PCE is still in the 2.5% sibling state, while core PCE (redefined to 2.6% from the previous 2.8% (even even 2.9% in early revisions)) has a 30 basis points improvement. This core title reading is the lowest since August 2024, and it is the first slowdown in PCE in four months. These figures suggest that easing inflationary pressures may gradually reshape market sentiment.
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Crypto analyst Bach (@cycleswithbach) quickly responded to X, emphasizing the bullish nature of the data. He noted that “this core title is the lowest reading volume since August 2024”, noting that the 30BP revision is a significant improvement. Although he warned too much optimism, he said: “This is a big difference, and it is actually optimistic about the market! We may still see some intermittent bottom formation, but this bull is not over yet! – The credit spread is still narrow, which shows that there is no risk in the credit market!”
After the data was released, Bitcoin recovered over $84,000, up 3.5% since the report and about 7.5% from today’s low of $78,258. After a week of Bitcoin 18% dropa loss of $96,000, the rebound marked a significant recovery. AltCoins is also under buoyancy; Ethereum climbed 5.8%, XRP rose 9.2%, and Solana soared 16%.
It is worth noting that the news that SOL’s rally coincides with the launch of Solana (SOL) futures on March 17, awaiting regulatory review of CFTC.
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Crypto Analyst Kevin (@kev_capital_ta) Weighing Regarding the meaning of the PCE version, it points out that “CME interest rate futures at the current moment have increased to 53.7% chance of lowering interest rates in June after PCE report. Increased from those below 50%. This is reliable news. #BTC #altcoins #crypto”
A broader macro perspective
In addition to PCE data, a broader macroeconomic signal can further support market recovery. Julien Bittel, head of macro research at Global Macro Investors (GMI), shared his views on X. property Current market volatility, especially in cryptocurrencies Tighten financial situation In the fourth quarter of last year, liquidity liquidity and slowed economic surprises.
Bittel believes that these conditions are now turning around: “In the past two months, financial situation has been eased rapidly – the dollar has fallen, bonds have lowered, come on – which has laid the foundation for data recovery.” He further noted that the price of Bitcoin now fully reflects the effect of the recent tightening, while the RSI has a 23-year-old, Most people Since August 2023, he advised: “When others are afraid, be greedy.”
At press time, BTC was trading at $83,804.
Featured images from Shutterstock, charts from TradingView.com
