Awaiting US Inflation, Crypto Assets Poised for Volatility
The crypto market moved cautiously ahead of Friday's US PCE inflation release. Bitcoin fell and remained around $109.9K, while Ether hovered around $4.34K; mild pressure stemmed from a strengthening dollar and profit-taking after this month's rally. Several media outlets also highlighted BTC's weakness near the $111K area as important support.
The market's primary focus is the PCE—the Fed's favorite inflation measure—which could alter expectations for interest rate cuts. A "hot" reading risks strengthening the USD/yield and pressuring riskier assets, including crypto; conversely, a "cool" reading could provide breathing space for a further rally. Risk sentiment was also influenced by the weakening US index futures before the release.
On the news front, Eric Trump expressed the Trump family's support for the Bitcoin community at the Bitcoin Asia conference and even predicted a $1 million price—a headline that generated considerable discussion despite price volatility. In derivatives, the market awaited the expiry of large-value BTC and ETH options later today, which often triggers volatility around the "max pain" level. Meanwhile, ETH recently hit a new record near $4.96,000 before correcting, indicating the rally is still healthy but needs confirmation above $5,000 to continue.
Source: Newsmaker.id
