U.S. Core PCE Holds Steady, Fed Rate Cut Bets Rise – Coincu

PANews reported on May 30 that the U.S. Core PCE price index rose 2.5% in April year-on-year, the lowest since March 2021, meeting expectations.

Market bets on a Federal Reserve rate cut in September 2025 have grown. This expectation has historically supported risk asset valuations, sparking interest in both traditional and crypto markets.

Core PCE Hits 2.5%: Implications for Fed Policy

The U.S. Bureau of Economic Analysis reported that April’s Core PCE price index increased by 2.5% year-on-year and 0.1% month-on-month, matching market predictions. Core PCE’s status as the Fed’s preferred inflation measure lends credibility to predictions for policy adjustments. This metric’s reduction supports the potential September rate cut, aligning with Federal Reserve objectives.

Reactions from traders indicate a strengthened positioning for a Federal Reserve rate cut. This sentiment shift has implications for financial markets, including potential positive catalysts for digital assets. Bitcoin and Ethereum historically respond well to Fed-induced liquidity conditions. “The Core PCE data reflects ongoing progress in U.S. disinflation trends.” – Federal Reserve, Chairman Jerome Powell

Reactions from traders indicate a strengthened positioning for a Federal Reserve rate cut. This sentiment shift has implications for financial markets, including potential positive catalysts for digital assets. Bitcoin and Ethereum historically respond well to Fed-induced liquidity conditions. “The Core PCE data reflects ongoing progress in U.S. disinflation trends.” – Federal Reserve, Chairman Jerome Powell

Bitcoin’s Response to Market Shifts and Analyst Insights

Did you know? The last period in which Core PCE approached the Fed’s 2% target coincided with significant rallies in digital assets between late 2020 and early 2021.

According to CoinMarketCap, Bitcoin’s current price is $103,592.14, with a market cap of approximately “2.06 trillion”. The asset’s dominance stands at 63.64%, with trading volume changing 39.36% in the last 24 hours. Notably, Bitcoin’s price fell by 1.98% over the past 24 hours, yet rose 25.30% over 60 days, illustrating volatility.

Insights from Coincu research suggest that the Core PCE decrease may enhance cryptocurrency appeal as a hedge against potential inflationary cycles. Understanding these historical ties helps predict market adjustments, particularly where trading volumes and staking trends on platforms like Ethereum might increase in anticipation of further financial stimuli.