Bitcoin Surges 3.5% to $87,000 Ahead of US PCE Data

Bitcoin's price has surged by an additional 3.5%, reaching $87,000 ahead of the release of the US core PCE data this week. This upward trend has been bolstered by the bullish outlook of former BitMEX CEO Arthur Hayes, who anticipates that the Federal Reserve will soon implement quantitative easing (QE) measures. Hayes predicts that this move could propel Bitcoin's price to $110,000 and beyond.

Hayes' optimism is rooted in his belief that the Federal Reserve will shift from quantitative tightening (QT) to quantitative easing (QE) in the near future. He downplays the impact of Trump’s tariffs, referring to it as “transitory inflation,” a term used by Fed Chair Jerome Powell. Hayes also noted that there is a possibility of a Bitcoin bottom formation at $77,000, with an upward trajectory expected from that point.

As of the latest update, Bitcoin is trading at $86,758, reflecting a 3.17% increase. This surge in price is accompanied by a significant rise in daily trading volume, highlighting a strong bullish undercurrent in the market. The BTC futures open interest has also increased by 7.79%, with 24-hour short liquidations exceeding $50 million.

This week, the Federal Reserve will release its core PCE price index for February, a closely watched inflation measure. Market expectations suggest a slight rebound in the index, with forecasts predicting an increase from 2.6% to 2.7%. Alongside the PCE data, the Fed will also unveil its final one-year inflation rate forecast for March, providing deeper insights into inflationary trends and shaping market sentiment for risk assets moving forward.

Institutional demand for Bitcoin has been on the rise, contributing to the recent price surge. Last week, US spot Bitcoin ETFs recorded inflows for six consecutive days, indicating a strong resumption in demand. Corporate players like Strategy and Metaplanet have continued their Bitcoin purchases, with Metaplanet announcing the acquisition of an additional 150 Bitcoin, bringing its total holdings to 3,350 BTC. The cumulative investment by Metaplanet stands at approximately $278.8 million, with an impressive year-to-date BTC yield of 68.3%. Strategy’s executive chairman Michael Saylor has also hinted at more BTC purchases in the near future.