Bitcoin and Ethereum holders rejoice as US PCE comes in below expectations
- Bitcoin and Ethereum holders, risk asset traders rejoiced at the release of the Personal Consumption Expenditure price index.
- The Core PCE Price Index rose 0.3% in March, aligned with market expectations.
- The US Dollar Index was last seen rising 0.55% on the day at 102.05, while Bitcoin price hovered close to $29,500.
The release of the US Personal Consumption Expenditure (PCE) Price Index came in at market expectations. The Core PCE Price Index nosedived to 4.6% Year-on-Year (YoY) and climbed 0.3% Month-on-Month (MoM).
Bitcoin price jumped closer to $29,500 within the first few minutes of the release. BTC was trading close to $29,300 ahead of the US PCE release. Ethereum price reacted positively to the US PCE release and climbed to $1,915 within minutes of the announcement.
Also read: Breaking: US annual Core PCE inflation declines to 4.6% in March vs. 4.5% expected
Risk assets Bitcoin and Ethereum rally with US PCE release
Crypto analysts feared US PCE numbers coming in hotter than expected as this would negatively influence trader sentiment towards risk assets like Bitcoin and Ethereum. With the April 28 release, BTC and ETH holders witnessed a positive reaction to the release.
The yearly rate eased to 4.6% from 5% in February 2023. Combined with the Core PCE Price Index coming in at market expectations, it sparked a recovery in risk assets.
Bitcoin was trading close to $29,300 ahead of the release and climbed close to $29,500, eyeing the $30,000 target on the five-minute price chart.
BTC/USD price chart
Ethereum holders reacted in a similar manner, rejoicing in the Fed’s preferred inflation measure coming in at market expectations. ETH rallied close to $1,915 in the minutes following the release.
ETH/USD price chart
Ethereum holders are eyeing the $1,930 level as the altcoin continues its upward trend in response to shifting macroeconomic outlook.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
