Bitcoin (BTC) has been consolidating just below record highs after its surge past $124,000 in mid-August, with investors now fixated on the Federal Reserve’s next move.
Markets had anticipated rate cuts earlier this summer, but June and July passed without action. That leaves September as the next pivotal moment — and the crypto market is already pricing in an 85% chance of a cut.
Powell’s Jackson Hole Remarks
At Jackson Hole, Fed Chair Jerome Powell hinted at a more balanced approach, stressing that while monetary policy remains restrictive, shifts in growth and inflation risks could justify adjustments. His tone suggested flexibility rather than urgency, keeping traders cautious.
Fresh Inflation Data in Focus
Adding to the debate, the Fed’s preferred inflation gauge — the Personal Consumption Expenditures (PCE) index — was released for July.
- Core PCE (YoY): 2.9% (in line with forecasts, up from 2.8%)
- Core PCE (MoM): 0.3% (unchanged, matching expectations)
- Headline PCE (YoY): 2.6% (steady, as projected)
- Headline PCE (MoM): 0.2% (meeting forecasts, easing from 0.3%)
The numbers show inflation cooling slowly, strengthening the case for the Fed to ease policy — a move that could act as a tailwind for Bitcoin.
Outlook for BTC
For now, Bitcoin remains range-bound, but analysts warn that the Fed’s September decision could set the tone for the rest of the year. A cut may reignite BTC’s upward momentum, while another delay risks shaking investor confidence just as crypto markets test new highs.
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Source: https://coindoo.com/bitcoin-traders-eye-september-fed-decision-as-pce-data-release/