Bitcoin Nears $65K as US PCE Inflation Cools to 3.7%
Key Facts
In a move reflecting the sensitivity of risk assets to cooling inflationary pressures, Bitcoin's price approached the $65,000 threshold. This upward momentum followed the release of US Personal Consumption Expenditures (PCE) data, which showed annual inflation slowing to 3.7%. These softer-than-anticipated figures have effectively eased investor concerns regarding the potential for further interest rate hikes by the Federal Reserve in the near term.
Despite the gains, market sentiment remains tempered by caution due to renewed military exchanges between the United States and Iran, which limited the upside momentum. According to market data and analyst reports, crypto-linked assets saw significant activity; Bitcoin miners like MARA and Riot Platforms posted strong gains, while altcoins including Ethereum and BNB rose alongside a 0.9% increase in the total crypto market capitalization.
Looking ahead, traders are monitoring Bitcoin's stability near current resistance levels after it recovered from a session low of $63,252.
Latest Updates · 5
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Update: Bitcoin has stabilized at the $64,208 level as momentum indicators turn flat, signaling a period of market consolidation. Analysts have identified binary trading levels to watch, with $67,000 acting as the primary upside target and $60,000 serving as the critical downside support.
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Update: Bitcoin briefly topped the $65,000 threshold on Thursday, reaching an intraday high of $65,071 before trading near $64,729. This price action followed US economic growth data that fell short of forecasts, further fueling expectations for a less restrictive monetary environment.
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Update: The recent inflation data has taken on historical significance as the Federal Reserve's preferred inflation gauge posted its first absolute decline in six years. This milestone reinforces market confidence in a potential shift toward accommodative monetary policy, providing a fundamental tailwind for Bitcoin's price stability at current levels.
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Update: The market has entered a consolidation phase around the $64,500 level, driven by inconsistent flows into Bitcoin ETFs. Current price action is being tempered by selling pressure from short-term holders offloading assets, which has balanced the gains previously triggered by macroeconomic data.
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Update: Technical data indicates that Bitcoin spot trading volumes are nearing multi-year lows, suggesting liquidity caution despite price stability. Simultaneously, financial markets are witnessing a rare phenomenon as US Treasury yields have outpaced carry trade returns for only the second time on record, potentially impacting capital flows into digital assets.