Bitcoin Holds Near $80,000 as September PCE Inflation Rises to 3.6%
Bitcoin continued to trade near the $80,000 level after the Federal Reserve's October interest rate decision, as newly released September Personal Consumption Expenditures (PCE) data showed inflation remaining elevated in the United States.
The latest figures showed annual headline PCE inflation reaching 3.6%, up from 3.4% previously, while core PCE inflation rose to 3.1% from 3.0%. Both measures came in line with market expectations, according to the reported figures.
September PCE Inflation Data
The annual Core Personal Consumption Expenditures Price Index increased by 3.1%, matching expectations of 3.1% and rising from the previous reading of 3.0%. On a monthly basis, core PCE inflation rose by 0.3%, in line with both forecasts and the previous month's figure.
Annual headline PCE inflation came in at 3.6%, matching expectations but exceeding the previous reading of 3.4%. Monthly headline PCE inflation increased by 0.5%, meeting expectations while accelerating from the previous month's 0.3% increase.
The PCE price index is closely monitored by the Federal Reserve as it assesses inflation trends and determines monetary policy. The core measure excludes food and energy prices.
Federal Reserve Keeps Interest Rates Unchanged
The inflation figures followed the Federal Reserve's October policy decision, in which the central bank kept its benchmark interest rate unchanged at 3.75% to 4%. Two members reportedly favored a 25-basis-point rate increase instead.
Federal Reserve Chair Kevin Warsh said inflation remained above the central bank's 2% target. The latest PCE readings reinforce the picture of persistent price pressures, although the figures alone do not establish what decision policymakers will make at their next meeting.
The Kobeissi Letter Warns of Further Rate Hike Risk
The Kobeissi Letter said September PCE inflation had risen to 3.6%, while core PCE inflation reached 3.1%. It also argued that consumer price index (CPI), producer price index (PPI) and PCE inflation were all rising again.
Based on the inflation data, The Kobeissi Letter suggested that a Federal Reserve rate hike in December was imminent. That assessment represents the publication's interpretation of the figures rather than a confirmed policy decision by the central bank.
Bitcoin's Initial Reaction Remains Unclear
Bitcoin was reported to be trading around $80,000 following the Federal Reserve decision and the release of the September PCE figures. The available source material does not provide a specific price change, percentage move or detailed market reaction immediately after the inflation data was published.
Investors will continue to monitor inflation readings and Federal Reserve communications for clues about the direction of US monetary policy. Interest rate expectations can influence financial markets, including cryptocurrencies, but the supplied information does not establish how Bitcoin will respond to future policy decisions.
source: en.bitcoinsistemi
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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