Bitcoin Directionless Ahead of PCE Data: $65K in Focus

IconCryptoNewsTerminal Staff30 May, 2024

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Bitcoin Directionless Ahead of PCE Data: $65K in Focus

Bitcoin is hovering near $68,000, facing a lack of direction ahead of the release of the US personal consumption expenditures (PCE) data for April on Friday, which could influence the digital asset's trajectory. According to CoinDesk, a weak reading in the PCE data could potentially send Bitcoin back towards $65,000. Alex Kuptsikevich, senior market analyst at retail FX broker FxPro, commented on the situation: “The worst-case scenario is a drop towards $60,000, with a more optimistic outcome being a drop to $65,000, which coincides with the 50-day moving average.” The PCE data is a key indicator of inflation, and its release is highly anticipated by investors. A higher-than-expected reading could strengthen the case for the Federal Reserve to tighten monetary policy, which could negatively impact risk assets like Bitcoin. Conversely, a weaker-than-expected reading could ease concerns about inflation and support risk assets. It is worth noting that Bitcoin has been trading in a range between $65,000 and $69,000 for the past week, with no clear directional bias. The release of the PCE data could provide the catalyst for a breakout from this range.

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