Bitcoin managed to make pretty snap gains at the Wall Street open on 26th May as the macroeconomic data in the country delivered a bad surprise.
According to data received from Cointelegraph Markets Pro and TradingView, it was understood that the exchange had touched upon a price of $27,000. The pair rose pretty unexpectedly after the Personal Consumption Expenditures date of the day showed its first rise in October 2022. Such a reading should be presenting a headwind for risk assets, including cryptocurrency, which implies that inflation should remain persistent and that more financial tightening could be required to tame it.
Bitcoin Could Be Seeing Some Improvement
The Kobeissi Letter, a financial commentary resource, wrote as a response that this was a major setback to the fight against inflation by the Feds. The commentary resource also mentioned that the expectations for interest rate hikes from the Federal Reserve had been shifting rapidly due to the PCE Event.
According to FedWatch Tool, belonging to CME Group, the market had been narrowingly favoring a fresh hike in June, whereas it was more than 80% certain that a pause would occur. Tedtalksmacro, a Financial commentator, also acknowledged that the PCE Gains were mostly relative. He reacted that the US PCE Data had come in pretty hot and above the expectations of the analysts. On a 3-month annualized basis, the core PCE printed was even lower- down to 4.2%.
Moving towards Bitcoin itself, Michael van de Poppe, the CEO and founder of Eight, a trading firm, flagged the potential for an upside continuation. Commenting on the price action of the day, he mentioned that this was the first step for Bitcoin, as they reclaimed $26,600, and were looking for continuation towards the range highs.
