Bitcoin’s price remained largely unchanged despite U.S. equity markets gaining ground following the latest inflation data.
The U.S. Personal Consumption Expenditures (PCE) Price Index, a key measure of inflation, held steady at 2.7% year-over-year in April, matching economists’ expectations.
Bitcoin, the largest cryptocurrency by market cap, saw a modest increase of 0.7% over the past 24 hours, trading at $68,738 as of 9:26 AM ET.
The GM30 Index, representing the top 30 cryptocurrencies, also edged up by 0.55% to 144.92.
The latest PCE inflation report, released by the U.S. Bureau of Economic Analysis on Friday, suggested that inflation pressures are stable.
This led to a positive response in the stock market, with futures for the Dow Jones Industrial Average rising by 0.2%, S&P 500 futures up by 0.3%, and the NYSE Composite increasing by 0.32% in pre-market trading.
Aurelie Barthere, Principal Research Analyst at Nansen.ai, commented on the persistent nature of inflation, describing it as “sticky.”
Barthere noted that the market has already priced in two Federal Reserve rate cuts for 2024 but warned of sustained downside risks if high interest rates persist.
“A growth slowdown would not be positive for crypto. While we are tactically constructive on crypto, we remain alert to signs of weak growth,” Barthere said.
Despite the steady inflation data and the subsequent boost in equities, Bitcoin and the broader crypto market showed only slight movements, indicating cautious sentiment among crypto investors.
The market remains watchful of economic indicators and Federal Reserve actions that could influence future price trends.
