Core Inflation Surges 2.7% Year-on-Year, Crypto Market Faces Volatility

On June 27th, the U.S. May Core PCE Price Index rose to 2.7% year-on-year, surpassing the expected 2.4%. The monthly rate, however, was 0.2%, falling short of the anticipated 0.3%. Additionally, the overall PCE price index increased to 2.3%, signaling persistent inflationary pressures.

The University of Michigan Consumer Sentiment Index and Inflation Expectations were also released, with forecast values remaining unchanged from the previous period. This indicates that the market maintains a cautious outlook on the economy, and the American public continues to approach price trends with prudence.

Bitunix analysts have responded to these economic indicators by noting that the higher-than-expected core annual inflation serves as a reality check for the market. This development is expected to constrain the short-term upward movement of the crypto market. In light of this, analysts advise investors to reduce high-leverage positions and control their exposure. They recommend waiting for further policy clarification and market sentiment stabilization before re-engaging, emphasizing conservative operations in the short term.

According to the analyst's forecast, the intensifying volatility in the crypto market is a direct response to the rising core inflation rate. This volatility is likely to persist until there is greater clarity on economic policies and market trends. Investors are urged to adopt a risk mitigation strategy by reducing their positions and focusing on more stable assets until the market stabilizes.