September PCE Inflation Hits 2.8% as Expected; Bitcoin Holds Steady Ahead of Fed Meeting
The Bureau of Economic Analysis (BEA) released delayed data for September's Personal Consumption Expenditures (PCE), revealing a headline PCE inflation rate of 2.8% year-over-year and a core PCE inflation rate of 2.8%, down slightly from 2.9%, matching expectations of 2.8% for both measures.
Following the release, Bitcoin traded around $92,000, encountering resistance near $93,000 and support at $92,000, with its technical setup showing a descending trendline since November 11.
The upcoming Federal Open Market Committee (FOMC) meeting scheduled for December 9-10 has drawn significant market attention. The market has priced in an 86% chance of a rate cut post-meeting, conditional on inflation cooling and a resilient labor market.
Initial jobless claims data showed 191,000 claims compared to the expected 219,000, indicating labor market strength.
Real-time data from Truflation indicated PCE at 2.13% and core PCE at 2.6%, suggesting a discrepancy with the official BEA figures. This gap may be due to the official September data being collected before a government shutdown, potentially not reflecting recent economic conditions.
Quantitative tightening (QT) officially ended on December 1. If inflation trends lower and labor market strength continues, a rate cut in December remains probable but not guaranteed.
The total cryptocurrency market capitalization stands around $3.1 trillion as traders await further clarity ahead of the Federal Reserve's decision.
