{"id":12102,"date":"2023-05-26T19:07:08","date_gmt":"2023-05-26T19:07:08","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=12102"},"modified":"2023-05-26T19:07:10","modified_gmt":"2023-05-26T19:07:10","slug":"bitcoin-nears-27k-despite-hot-pce-data-sparking-june-rate-hike-bets","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12102","title":{"rendered":"Bitcoin nears $27K despite \u2018hot\u2019 PCE data sparking June rate hike bets"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) made snap gains at the May 26 Wall Street open as United States macroeconomic data delivered a nasty surprise.<\/p>\n<p><em>BTC\/USD 1-hour candle chart on Bitstamp. Source: TradingView<\/em><\/p>\n<h2>Bitcoin shrugs off new U.S. inflation woes<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD nearing $27,000 on Bitstamp.<\/p>\n<p>The pair rose unexpectedly after the day\u2019s Personal Consumption Expenditures (PCE) data showed its first rises since October 2022.<\/p>\n<p>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.<\/p>\n<p>\u201cThis is a major setback to the Fed\u2019s fight against inflation,\u201d financial commentary resource The Kobeissi Letter\u00a0wrote in part of a response.<\/p>\n<p>Kobeissi noted that expectations for interest rate hikes from the Federal Reserve were \u201cshifting rapidly\u201d thanks to the PCE event.<\/p>\n<p>According to CME Group\u2019s 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.<\/p>\n<p><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/p>\n<p>Financial commentor Tedtalksmacro, meanwhile, acknowledged that the PCE gains were relative.<\/p>\n<p>\u201cUS PCE data came in hot, above analyst expectations. On a 3-month annualised basis, however, core PCE printed sharply lower&#8230; down to 4.2%,\u201d he reacted.<\/p>\n<p>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.<\/p>\n<p>The S&amp;P 500 and Nasdaq Composite Index were up 1% and 1.65%, respectively, at the time of writing.<\/p>\n<h2>DXY hits 10-week highs<\/h2>\n<p>Turning to Bitcoin itself, Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, flagged the potential for upside continuation.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin losing its 200-week trendline puts $20K in play \u2014 BTC price analysis<\/em><\/strong><\/p>\n<p>\u201cThat\u2019s step one for Bitcoin, as we reclaim $26,600 and are looking for continuation towards the range highs,\u201d he commented on the day\u2019s price action. <\/p>\n<p>\u201cIf the recent correction is deviation, we might break to $29,000 next week.\u201d<em>BTC\/USD annotated chart. Source: Micha\u00ebl van de Poppe\/Twitter<\/em><\/p>\n<p>He cautioned that PCE was \u201cnot a great sign\u201d for risk assets, noting the knee-jerk reaction for United States dollar strength \u2014 traditionally inversely correlated with crypto.<\/p>\n<p>The U.S. Dollar Index (DXY) hit 104.4 on the day, its highest levels since March 17.<\/p>\n<p>\u201cSome consolidation following this month\u2019s rally would be healthy for the dollar,\u201d popular trader Justin Bennett wrote in a dedicated forecast. <\/p>\n<p>\u201cBut a daily and weekly close above 104.20 opens up 105.00 early next week. The only thing that would turn me bearish on the DXY is a daily close below 103.50.\u201d<em>U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingView<\/em><\/p>\n<p><strong><em>Magazine: \u2018Moral responsibility\u2019: Can blockchain really improve trust in AI?<\/em><\/strong><\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-nears-27k-despite-hot-pce-data-sparking-june-rate-hike-bets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) made snap gains at the May 26 Wall Street open as United States macroeconomic data delivered a nasty surprise. BTC\/USD 1-hour candle chart on Bitstamp. Source: TradingView Bitcoin shrugs off new U.S. inflation woes Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD nearing $27,000 on Bitstamp. The pair rose unexpectedly after the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-12102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12102"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12102\/revisions"}],"predecessor-version":[{"id":12104,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12102\/revisions\/12104"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/12103"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}