😮 Crypto Market Down Despite PCE Inflation News
Bitcoin and the broader crypto market saw a decline even though April's Core PCE inflation index met analyst expectations, displaying the slowest annual rise since 2021. The core PCE rose by 2.5% year-over-year, while the broader index slowed to 2.1%. Aurelie Barthere from Nansen noted that the data might not significantly impact crypto markets, as it is considered a trailing indicator. The total crypto market capitalization decreased by 2.8%, with significant liquidations driven by drops in bitcoin and ether prices. The GMCI 30 Index, tracking the top 30 cryptocurrencies, fell over 3%, with notable drops in altcoins like XRP, SOL, and ADA. Dr. Kirill Kretov from CoinPanel highlighted that macroeconomic factors, especially political tensions, are heightening market cautions. Recent statements from President Trump regarding trade with China have exacerbated these tensions. With the PCE information digested, the upcoming Fed meeting on June 17-18 is considered the next significant event, with analysts expecting no change in interest rates. The crypto market remains volatile due to this high level of uncertainty.
FAQ
❓ Why did the crypto market dip despite the PCE data?
Even though the PCE data met expectations, broader macro-economic and political uncertainties are causing caution and volatility in the market.
❓ What is the impact of political tensions on crypto?
Political tensions, especially those related to trade, can lead to increased volatility in the crypto markets due to their impact on liquidity.
❓ What event might affect crypto markets next?
The upcoming Federal Reserve meeting on June 17-18 is expected to be the next major influence on the market.