{"id":18873,"date":"2023-05-26T17:02:31","date_gmt":"2023-05-26T17:02:31","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-nears-27k-despite-hot-pce-data-sparking-june-rate-hike-bets\/"},"modified":"2023-05-26T17:02:33","modified_gmt":"2023-05-26T17:02:33","slug":"bitcoin-nears-27k-despite-hot-pce-data-sparking-june-rate-hike-bets","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-nears-27k-despite-hot-pce-data-sparking-june-rate-hike-bets\/","title":{"rendered":"Bitcoin nears $27K despite \u2018hot\u2019 PCE data sparking June rate hike bets"},"content":{"rendered":"
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Bitcoin (BTC) made snap gains at the May 26 Wall Street open as United States macroeconomic data delivered a nasty surprise.<\/p>\n

BTC\/USD 1-hour candle chart on Bitstamp. Source: TradingView<\/em><\/figcaption><\/figure>\n

Bitcoin shrugs off new U.S. inflation woes<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD nearing $27,000 on Bitstamp.<\/p>\n

The pair rose unexpectedly after the day\u2019s Personal Consumption Expenditures (PCE) data showed its first rises since October 2022.<\/p>\n

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

\u201cThis is a major setback to the Fed\u2019s fight against inflation,\u201d financial commentary resource The Kobeissi Letter\u00a0wrote<\/a> in part of a response.<\/p>\n

Kobeissi noted that expectations for interest rate hikes from the Federal Reserve were \u201cshifting rapidly\u201d thanks to the PCE event.<\/p>\n

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

Fed target rate probabilities chart. Source: CME Group<\/em><\/figcaption><\/figure>\n

Financial commentor Tedtalksmacro, meanwhile, acknowledged that the PCE gains were relative.<\/p>\n

\u201cUS PCE data came in hot, above analyst expectations. On a 3-month annualised basis, however, core PCE printed sharply lower… down to 4.2%,\u201d he reacted<\/a>.<\/p>\n

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

The S&P 500 and Nasdaq Composite Index were up 1% and 1.65%, respectively, at the time of writing.<\/p>\n

DXY hits 10-week highs<\/h2>\n

Turning to Bitcoin itself, Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, flagged the potential for upside continuation.<\/p>\n

Related:\u00a0Bitcoin losing its 200-week trendline puts $20K in play \u2014 BTC price analysis<\/em><\/strong><\/p>\n

\u201cThat\u2019s step one for Bitcoin, as we reclaim $26,600 and are looking for continuation towards the range highs,\u201d he commented<\/a> on the day\u2019s price action. <\/p>\n

\u201cIf the recent correction is deviation, we might break to $29,000 next week.\u201d<\/p><\/blockquote>\n

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BTC\/USD annotated chart. Source: Micha\u00ebl van de Poppe\/Twitter<\/em><\/figcaption><\/figure>\n

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

The U.S. Dollar Index (DXY) hit 104.4 on the day, its highest levels since March 17.<\/p>\n

\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

\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<\/p><\/blockquote>\n

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U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Magazine: \u2018Moral responsibility\u2019: Can blockchain really improve trust in AI?<\/em><\/strong><\/p>\n

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<\/div>\n