Crypto Surge: Focus on PCE & the Fed
Bitcoin rallied and held around $113,000 on Thursday, responding to renewed market confidence in the likelihood of a Fed rate cut next month. This movement comes after a rally that had weakened this week; the $109,000 level is seen as key support by some analysts. The crypto market's short-term focus is on Friday's US PCE inflation release, which could alter expectations for the pace of easing.
In the altcoin market, movement was mixed. Ether (ETH) hovered around $4.60,000, while most major coins moved mixed: Solana recorded intraday gains, and Dogecoin also gained slightly. Recent BTC/ETH ETF fund flows have added to speculation of a rotation into altcoins, although Bitcoin's dominance remains historically high. With liquidity thinning ahead of US data, volatility across currencies could increase again.
At the macro level, the rate cut narrative remains a key driver of risk sentiment. The probability of a 25 bps cut in September remains high according to market measures, making tomorrow's PCE data a key determinant. On a tactical level, market participants are monitoring $109,000 as a BTC resistance area; a break below it could trigger a correction across altcoins, while benign inflation data could potentially restore risk appetite.
Source: Newsmaker.id
