Bitcoin nears $27K despite ‘hot’ PCE data sparking June rate hike bets
Bitcoin (BTC) made snap gains at the May 26 Wall Street open as United States macroeconomic data delivered a nasty surprise.Data from Cointelegraph Markets Pro and TradingView showed BTC/USD nearing $27,000 on Bitstamp.The pair rose unexpectedly after the day’s Personal Consumption Expenditures (PCE) data showed its first rises since October 2022.Such a reading should present a headwind for risk assets, including crypto, as it implies that inflation remains persistent and that more financial tightening may be required to tame it.“This is a major setback to the Fed’s fight against inflation,” financial commentary resource The Kobeissi Letter wrote in part of a response.Kobeissi noted that expectations for interest rate hikes from the Federal Reserve were “shifting rapidly” thanks to the PCE event.According to CME Group’s FedWatch Tool, the market now narrowly favors a fresh hike in June, whereas before, it was more than 80% certain that a pause would occur.Financial commentor Tedtalksmacro, meanwhile, acknowledged that the PCE gains were relative.“US PCE data came in hot, above analyst expectations.
On a 3-month annualised basis, however, core PCE printed sharply lower... down to 4.2%,” he reacted.Cause for relief for traders, meanwhile, came from accompanying news that the Biden administration was nearing a deal on the debt ceiling, with the deadline now just days away.The S&P 500 and Nasdaq Composite Index were up 1% and 1.65%, respectively, at the time of writing.Turning to Bitcoin itself, Michaël van de Poppe, founder and CEO of trading firm Eight, flagged the potential for upside continuation. Related: Bitcoin losing its 200-week trendline puts $20K in play — BTC price analysis “That’s step one for Bitcoin, as we
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