Bitcoin’s price shows little reaction to the latest U.S. economic data, raising concerns among analysts about the strength of its support at $60,000.
Bitcoin Holds Steady Despite Low PCE Index Reading
On June 28, Bitcoin remained largely unaffected by the new Personal Consumption Expenditures (PCE) Index data, the Federal Reserve’s preferred measure of inflation. The core PCE showed a year-on-year increase of 2.6%, the lowest since March 2021, in line with expectations.
Skew, a popular trader, noted on social media that while the PCE data was as expected, there was a slight uptick in personal income and a decrease in personal spending. He described the numbers as “pretty good,” but observed that Bitcoin and other cryptocurrencies showed little movement in response.
Retail sales, however, showed a potential for future volatility, highlighted by a significant 17% drop in the stock of clothing giant Nike. Skew also pointed out that the U.S. market’s focus remains on a possible interest rate cut in September and the potential impacts of a Trump presidency on various industries. He emphasized that the headwinds for crypto are more apparent now compared to a year ago.
As previously reported, market sentiment continues to lean towards the Federal Reserve cutting interest rates, which could provide a liquidity boost for risk assets, including cryptocurrencies, during the September meeting of the Federal Open Market Committee (FOMC). Data from CME Group’s FedWatch Tool showed nearly a 68% chance of a rate cut on the day.
Concerns Over BTC Price Support
In the meantime, Bitcoin traders saw minimal changes, with BTC/USD hovering just above the $60,000 mark. Concerns persist among analysts about the strength of this support level, given the current market conditions and potential economic developments.
Summary Review: While the latest U.S. economic data did not significantly impact Bitcoin’s price, there are growing concerns about its support at $60,000. Market participants are keeping a close eye on potential future volatility triggers and the broader economic outlook.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
