Bitcoin Price Prediction: BTC Soars to $67,900; Mixed US Inflation Data & Fed Rate Cut Hopes Fuel Rally
Bitcoin (BTC) continued its upward momentum, reaching around $67,900. The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, increased by 0.2% month-over-month in April, aligning with expectations but slightly below the previous month’s 0.3% rise. This modest increase may ease some inflation concerns for the Fed, but consistent readings are necessary to support a potential rate cut by September.
The Chicago PMI dropped to 35.4, below the anticipated 41.1, indicating weaker manufacturing activity. These mixed data points suggest a complex economic outlook, with easing inflation but slowing economic activity, hence driving a bullish Bitcoin price prediction.
Bitcoin (BTC) maintained its upward momentum, rising to around $67,900. The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, rose 0.2% month-over-month in April, meeting expectations but falling short of the previous month’s 0.3% rise.
The core PCE price index rose 0.25% in April (it rounded down to 0.2% because it was 0.249%)
Jan-March figures were revised down ever so slightly.
The 12-month change was 2.75%, a three-year low
The 6-month annualized rate was 3.18%, the highest since July pic.twitter.com/boKVU2IxLA
— Nick Timiraos (@NickTimiraos) May 31, 2024
This slight increase could alleviate some inflation concerns for the Fed, but consistent readings are needed to support a rate cut by September.
The Chicago PMI fell to 35.4, below expectations of 41.1, indicating weaker manufacturing activity. These data points suggest a mixed economic outlook, with inflation showing signs of easing while economic activity slows.
This data impacts Bitcoin price as the potential for a Fed rate cut by September becomes more likely if inflation
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