Bitcoin Surges Then Fluctuates As U.S. PCE Data Meets Forecasts

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Last Updated on October 29, 2022 by Bitfinsider

Bitcoin moved higher in response to U.S. consumer expenditure statistics, before giving up these gains as the market absorbed the most recent economic data.

Personal consumption expenditures (PCE) for the month of March were in line with the pre-release consensus estimate of 0.5%. In September, the annual change in PCE was 6.2%.

The price of Bitcoin reached $20,280 following the announcement. The largest cryptocurrency by market capitalization experienced a brief increase, followed by a decline, and a further increase. Indicators of the economy have influenced crypto prices during the previous few months.

PCE assesses the prices paid for products and services by U.S. consumers and those purchasing on behalf of others. The index measures the inflation or deflation of a variety of consumer items.

It is viewed as the Fed’s favored measure of inflation due to its ability to capture changes in consumer behavior, so providing a more comprehensive picture of inflation than the consumer price index (CPI). In September, the Consumer Price Index was 0.4% higher month-over-month and 8.2% higher year-over-year.

The economic indicator for today follows GDP statistics from yesterday that exceeded expectations. President Joe Biden stated that the U.S. economy increased by 2.6% in the third quarter, contradicting “doomsayers'” claims that the economy was underperforming.

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