The post Best Crypto to Buy Now As Bitcoin Price Bounces, Dollar Slips On PCE Inflation Data – Is The Bottom In? appeared on BitcoinEthereumNews.com.

The Bitcoin price is showing bullish strength as the US Dollar slipped following the dovish Personal Consumption Expenditures (PCE) data.  The PCE YoY rose by 2.4% in November, below the expected 2.5%. Similarly, core PCE came out at 2.8%, below the consensus 2.9% figure. The monthly PCE data also indicated that the economists could have been overestimating the threat of sticky inflation, a decidedly bullish scenario for risk assets.  BTC is up by 5.5% following the PCE release, while altcoins are also showing bullish strength. Is The Bottom In For Crypto? This week’s crypto price crash has been attributed to US Fed Chair Jerome Powell’s hawkish FOMC speech. While the central bank did cut its interest rates by 25 basis points in line with the market expectations, Powell suggested that the rate cuts could slow down going forward.  Indeed, the Fed’s latest Survey of Economic Projections (SEP) revised-up the policy rate and inflation projections. This is a decidedly bearish scenario for risk assets like cryptocurrencies, considering the Bitcoin price shows a strong correlation with the global money supply.  As such, experts are projecting a 20%-25% correction in BTC due to the recent tightening in the Global M2 Money Supply. This could result in a larger Bitcoin price crash to $81,000.    📰 Global liquidity (M2) and Bitcoin’s price: A synchronized dance🟠 Bitcoin’s price has historically mirrored global M2 money supply trends, often with a 70-day lag.🟠 Recent analyses suggest a potential 20–25% BTC price correction due to tightening M2 liquidity.🟠 2025 rate… pic.twitter.com/2WHGgFKv7F — Bitcoinsensus (@Bitcoinsensus) December 10, 2024   However, the latest PCE data suggests that the Federal Reserve could have overestimated the inflationary pressure in the US economy. Chicago Fed President Austan Goolsbee admitted as much in his latest comments. In fact, the Head Macro Economist at Swiss…

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Filed under: News - @ December 21, 2024 2:19 am