The value of cryptocurrency surged to $110K following the release of a report by the U.S. Bureau of Economic Analysis on personal consumption expenditures.
Bitcoin Shows Gains After Modest Inflation Data
On Friday, the Bureau of Economic Analysis shared its latest findings on personal consumption expenditures (PCE), revealing a 0.3% price increase for August, aligning with economists’ forecasts and bringing annual inflation to 2.7%. The previous month’s rate was at 2.6%, and initially, bitcoin showed little reaction to this data but eventually surpassed the $110K mark later in the day.
Core inflation, excluding food and energy sectors known for their volatility, recorded a slightly lower rise of 0.2% last month with an annualized PCE rate standing at 2.9%. The U.S. Federal Reserve views this index as its preferred gauge for measuring inflation levels. The central bank aims to keep price increases around an annual target of 2%, yet challenging employment figures reported earlier in September have led many to anticipate two additional interest rate reductions before year-end despite persistent inflationary pressures.
Initially muted by PCE data, bitcoin eventually mirrored stock market trends which rose after these announcements. At that time, the S&;&;&;&;;P 500 had increased by 0.56%, Nasdaq gained 0&period31%, while Dow climbed up by 0&period81%
"This situation is not particularly favorable for Federal Reserve policies,” commented Loretta Mester, a former president from Cleveland’s Fed branch during her CNBC interview session.”They face limited options ahead—they wish both support labor markets whilst maintaining some policy restrictions necessary towards reducing ongoing inflations.”
An Overview Of Market Dynamics
As per Coinmarketcap reports during writing timeframes: Bitcoin traded at approximately &dollar110&comma205&period45 showing marginal growth rates within past day intervals equating roughly around ±57 percent whereas over seven-day spans it declined nearly five percent ranging between values such as &dollar108&comma713&period39 through highs reaching upwards toward almost eleven thousand dollars per unit
In terms regarding twenty-four-hour trading volumes experienced declines amounting approximately two-point-two-two percentage points totaling about sixty-six billion dollars whilst overall market capitalization edged higher gaining half-percent increments now valued close proximity near trillion-dollar ranges meanwhile bitcoin dominance slipped downwards point nine-zero percents resting just below fifty-nine percentile thresholds
Data provided via Coinglass indicates total open interest across futures contracts involving bitcoins saw increases reaching one-and-a-half percentage points since Thursday tallying seventy-nine billion USDs alongside liquidation events occurring throughout past days resulted combined thirty-two million losses distributed among longs shorts respectively