Panic or opportunity? Less fallout from US inflation on bitcoin

Inflation slowed in May in the United States. This development has sparked considerable interest among cryptocurrency investors, who are wondering how bitcoin and altcoins will react to this drop. Analysts offer different interpretations and perspectives behind this economic shift.

PCE inflation index falls to 2.6% in the United States

The latest economic data shows a decline in inflation in the United States, as measured by the Personal Consumption Expenditure (PCE) price index. The Bureau of Economic Analysis reported that PCE inflation fell from 2.7% to 2.6%, in line with market expectations. Also, core inflation, which excludes volatile items such as food and energy, also eased, falling from 2.8% to 2.6%. This decline represents the slowest rate of price growth since March 2021, signaling a cooling of inflationary pressures.

This moderation in inflation could have major implications for future monetary policies. Indeed, the likelihood of an interest rate cut by the Federal Reserve in September has increased, as indicated by the CME FedWatch Tool. Investors and economists are closely monitoring these developments, as a rate cut could stimulate financial markets and provide welcome relief after a period of rising costs.

Analyst Predictions for Bitcoin and Altcoins

Michael van de Poppe, a well-known analyst in the crypto industry, predicts that bitcoin will continue to consolidate in the coming days. While he predicts potentially higher returns for altcoins, he has yet to observe the signs heralding an altcoin season. Trader and analyst Rekt Capital, followed by more than 471,000 people on Twitter, points out that bitcoin sits just below the top of the bull flag, suggesting continued consolidation ahead of a possible breakthrough.

Bitfinex analysts, on the other hand, note the continued uncertainty and increased volatility in the cryptocurrency market. They note that the presidential debate between Donald Trump and Joe Biden has intensified market movements as investors digest the political implications.

According to analysts, the stance of Donald Trump, who has recently embraced the cryptocurrency industry, has favored the growth of memecoins such as TRUMP and MAGA, with respective increases of 11% and 16%. These dynamics show that despite increased volatility, there is considerable resilience and adaptability within the crypto market.

Recent inflation data brings a breath of optimism to the crypto market. With a possible interest rate cut by the Fed, bitcoin and altcoins could experience a rebound after a period of consolidation, marking a new chapter in the current economic dynamic.

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une blockchain certification consultant délivrée par Alyra, he rejoined l’aventure Cointribune in 2019. Convaincu du potential de la blockchain pour transform de nombreux sectors ©conomie, I am pris l’engagement de sensibiliser et d’informer le grand public sur cet éecosystème en constante évolution. The objective is permanent and mutual chain of blocking and opportunities to deliver. I try every day to provide an objective analysis of current events, decipher market trends, broadcast the latest technological innovations and put into perspective the economic and social issues of cette révolution en marche.

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The views, opinions and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Do your research before making any investment decisions.