Saturday, June 29, 2024 ▪
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Inflation slowed in May in the United States. This development has sparked great interest among cryptocurrency investors, who are wondering how Bitcoin and altcoins will react to this decline. Analysts offer different explanations and perspectives in the wake of this economic change.
US PCE inflation rate falls to 2.6%
Recent economic data shows a decline in the inflation rate in the United States, as measured by the personal consumption expenditures price index. Bureau of Economic Analysis Reported The personal consumption expenditures inflation rate fell from 2.7% to 2.6%, in line with market expectations. In addition, the core inflation rate, which excludes volatile items such as food and energy, also fell from 2.8% to 2.6%. This decline represents the slowest rate of price growth since March 2021, indicating a decline in inflationary pressures.
This moderation in inflation may have major implications for future monetary policies. Indeed, the odds of a Fed rate cut in September have increased, as CME’s interest rate watcher indicates. Investors and economists are watching these developments closely, as lower interest rates may stimulate financial markets and provide a welcome measure of relief after a period of rising costs.
Analysts’ expectations for Bitcoin and altcoins
Michael van de Poppe, a well-known analyst in the cryptocurrency industry, expects Bitcoin to continue to consolidate in the coming days. While he expects potentially higher returns for altcoins, he has yet to notice signs of altcoin season. Trader and analyst React Capital, followed by more than 471,000 people on Twitter, confirms that Bitcoin is just below the top of the bull flag, indicating continued consolidation before a potential breakout.
On the other hand, Bitfinex analysts point to the ongoing uncertainty and increasing volatility in the cryptocurrency market. They point out that the presidential debate between Donald Trump and Joe Biden intensified market movements as investors absorbed the political ramifications.
According to analysts, the stance of Donald Trump, who recently embraced the cryptocurrency industry, contributed to the rise of currencies such as TRUMP and MAGA, with increases of 11% and 16%, respectively. These dynamics indicate that despite increased volatility, there is great flexibility and adaptability within the cryptocurrency market.
Recent inflation data brings some optimism to the cryptocurrency market. With the possibility of interest rate cuts by the Federal Reserve, Bitcoin and altcoins may see a rebound after a period of consolidation, marking a new chapter in the current economic dynamic.
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Diploma in Political Science in Toulouse and holds the title of Consultant Blockchain Certification Delivered by Alyra, where I rejoined the Cointribune adventure in 2019. Own the potential of blockchain to transform many sectors of the economy, and I have pushed it to engage and inform the large public about this ecosystem in constant development. . My goal is to allow someone better to understand blockchain and take advantage of its opportunities. Every day I do my best to provide an objective analysis of reality, decode market trends, convey the latest technological innovations, and move forward from the perspective of the economic and societal games of this market revolution.
Disclaimer
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.