Bitcoin Holds Above $107,000 Amid 2.7% US Core PCE Inflation

Bitcoin is currently holding above $107,000 as traders navigate through mixed macroeconomic signals. The latest US core PCE data, which is the Federal Reserve's preferred inflation gauge, showed a 2.7% year-over-year increase in May, slightly higher than the expected 2.6%. This data indicates that inflation remains sticky, with core PCE rising 0.2% month over month and headline PCE increasing by only 0.1%.

This economic backdrop supports the Federal Reserve's cautious approach to rate cuts. Fed Chair Jerome Powell has advised patience in upcoming decisions, citing inflation risks and potential tariffs that could be imposed by Trump. Despite these concerns, Bitcoin has shown resilience, maintaining a price above $106,000, while other risk assets are experiencing stress.

There is currently no significant selling pressure on Bitcoin, even after the release of hotter inflation numbers. Market participants are in a wait-and-see mode, anticipating further macroeconomic developments or confirmation of a technical breakout. Institutional confidence in Bitcoin remains strong, as evidenced by the actions of Japanese firm Metaplanet. The company has raised $300 million in zero-coupon bonds to accelerate its Bitcoin-only acquisition plan, reaffirming its bold long-term vision under CEO Simon Gerovich.

Recent filings indicate that Metaplanet purchased 1,111 BTC during the recent market dip, aiming to accumulate 21,000 BTC by 2026 and 210,000 BTC by 2027. This strategy is similar to MicroStrategy’s model but takes it further, as Metaplanet is building its entire corporate thesis around Bitcoin. The company’s approach could mark the beginning of a new wave of corporate adoption, with its single-asset strategy gaining traction both in Japan and abroad.

On the technical front, BTC/USD is approaching a breakout after a week of consolidation. The price is currently at $108,215, testing the upper boundary of the rectangle at $106,450-$108,980. A bullish engulfing candle has formed at resistance, and the price is above the 50-EMA at $106,257, indicating underlying strength. The MACD is positive, suggesting that momentum could return if volume comes in to support the next move. A close above $108,980 would likely lead to a test of $110,448 and then $111,944.

Bitcoin Hyper ($HYPER), the first Bitcoin-native Layer 2 powered by the Solana Virtual Machine (SVM), has surpassed $1.74 million in its public presale. The token is priced at $0.012075, with the next price tier expected within hours. Designed to merge Bitcoin’s security with Solana’s speed, Bitcoin Hyper enables fast, low-cost smart contracts, dApps, and meme coin creation, all with seamless BTC bridging. The project is audited for scalability, trust, and simplicity, making it a Layer 2 contender to watch in 2025. With staking, a streamlined presale, and full rollout expected by Q1, $HYPER is gaining serious traction.