The U.S. core PCE price index— the Federal Reserve’s key inflation gauge— rose 0.2% in September, matching expectations. Year-over-year, it came in at 2.8%, slightly below forecasts.
This data shows inflation is easing but still above the Fed’s 2% target, leaving uncertainty about whether interest rate hikes are truly over. Any future Fed decision will directly influence risk assets, including cryptocurrencies.
Why It Matters for Crypto
Fed policy affects liquidity and risk appetite, impacting Bitcoin, Ethereum, and broader crypto markets.
Stable, expected inflation data gives markets some relief, but traders should watch upcoming reports for possible volatility.
Key Points for Investors
Follow Fed statements closely.
Monitor Treasury yields and macro trends.
Expect crypto market reactions to future inflation updates.
Core PCE is released monthly and is crucial for understanding how traditional economic conditions shape digital asset movements.
