Recent data from COINOTAG on Friday, September 30, reveals that the U.S. core PCE for August was lower than market forecasts, showing a 2.2% year-on-year increase, aligning closely with the Federal Reserve’s 2% target. This deceleration in inflation has bolstered market expectations that the Fed will proceed with interest rate cuts in the upcoming months. The likelihood of a 50 basis point rate reduction in November has climbed to 54.1%, up from 49.3%. Concurrently, last week saw the Dow Jones Industrial Average gain 0.59%, the S&P 500 ascend 0.62%, and the Nasdaq advance 0.95%, marking three consecutive weeks of gains for these key indices. Bitcoin surged nearly 4% over the week, also continuing its three-week growth trend and poised for its best September performance ever. Correspondingly, the U.S. dollar index declined for four consecutive weeks, erasing gains accumulated since mid-July. Meanwhile, spot gold prices hit a new peak last week, increasing by 1.38%, and chalking up nearly 30% gains year-to-date, spurred by rate cuts from major central banks and ongoing geopolitical tensions in the Middle East. This surge has outstripped the S&P 500’s 20% growth. Falling inflation in Europe and the United States, along with an accelerated pace of global rate cuts, is expected to significantly drive both stock and crypto markets. This Friday, the release of the U.S. non-farm payroll data for September will be crucial; a robust performance could reinforce the anticipation of a 50 basis point rate cut in November. 4E, a financial trading platform dealing in cryptocurrencies, stock indices, bulk gold, and forex, emphasizes vigilance regarding market volatility risks and prudent asset allocation.
Source: https://en.coinotag.com/breakingnews/bitcoin-surges-4-amid-expectations-of-continued-fed-rate-cuts-and-cooling-inflation/