Bitcoin’s price surged in the past hour after the US Bureau of Economic Analysis released the core PCE report. The cryptocurrency touched $85,600, jumping from below $84K just an hour ago, showcasing that crypto traders welcomed the signs of cooling inflation.
It’s important to note that many altcoins also surged in the past hour, including ZEC, which is up more than 3.6%, HYPE, up 1.1%, ETH up 1.5%, SOL up 2.2%, and so forth.
This comes on the back of the fact that consumer prices posted a smaller-than-expected increase in August from a year ago, according to the primary inflation gauge of the Federal Reserve. The personal consumption expenditures price index increased by 0.3% for the month, putting the 12-month gain at 3.4%.
On the other hand, excluding food and energy, PCE posted a 0.2% increase that put the annual core level at 3%. The expectations were for a 0.3% increase and 3.3% annual rate, conversely. Speaking on the matter was David Russel, global head of market strategy at TradeStation, who said that this is “good news for investors worried about the recent surge in bond yields, and it bolsters the case for not hiking in October.” Recall that earlier this month, the Federal Reserve increased interest rates for the first time in three years, which, contrary to what many expected, pushed BTC’s price up.
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