Crypto Slumps Ahead of PCE: Bitcoin & Ether Trade Lower
The crypto market closed lower on Thursday, driven by cautious sentiment ahead of the PCE release—the Fed's favorite inflation measure—which could shift interest rate cut expectations. Bitcoin fell below $110,000, while Ether also suffered, hovering below $3,900, after a major deleveraging event earlier this week triggered billions of dollars in liquidations and dampened risk appetite in crypto assets.
Fundamentally, Bitcoin spot ETF flows provided a cushion but haven't yet changed the short-term trend: daily inflows of around $241 million were recorded despite the price remaining subdued, indicating a tug-of-war between institutional demand and caution ahead of the inflation data. Furthermore, the Bitcoin/Ether options expiration on Friday added tactical volatility, as market participants adjust their positions for a potential PCE surprise.
Going forward, the direction of crypto will be determined by a combination of PCE inflation, the prospect of a Fed rate cut, and macroeconomic dynamics impacting the dollar and bond yields. If the PCE cools, the chances of easing increase and could support prices; Conversely, higher inflation risks prolonging the correction. For now, the market remains range-bound with a cautious bias after the sharp decline over the past week, while awaiting the next macro catalyst.
Source: Newsmaker.id
