Bitcoin support level faces test from US inflation data

Key Facts

As financial markets brace for key US inflation data, cryptocurrency traders are eyeing a potential test of a new Bitcoin support level following the release of core PCE on Thursday. The level was established by the market, and the data could either validate it or trigger a breakdown, according to a CoinDesk report.

The core inflation release comes amid intense focus on the Fed's rate path, with last week's initial jobless claims at 226K (vs. 225K forecast), underscoring labor market strength, according to Department of Labor data.

Traders await core PCE on Thursday, which could determine Bitcoin's near-term direction. Markets are also watching the Philadelphia Fed Manufacturing Index, which came in at 10.3, beating forecasts, potentially reinforcing a hawkish Fed stance and pressuring risk assets like Bitcoin.