PCE Inflation Data Expected 2.2% Year-on-Year Rise, Rate Cut Hopes Diminish

Bitunix analysts have highlighted the upcoming release of the April Personal Consumption Expenditures (PCE) data, a key inflation indicator closely monitored by the Federal Reserve. Market expectations suggest that the PCE is anticipated to rise by 2.2% year-on-year, with core PCE expected to increase by 2.6% year-on-year. The month-on-month growth rate is projected to remain flat, indicating that while inflationary pressures persist, they have begun to ease. However, concerns linger about the potential rebound in inflation due to the impact of tariffs, raising fears of a new inflationary cycle.

In addition to the PCE data, the growth rates of personal spending and income for April have shown signs of slowing down, suggesting a decrease in demand. This has led investors to closely watch the Federal Reserve's policy stance, with market expectations for a rate cut in September dropping from 68% to 47%.

Bitunix analysts suggest that the current inflation data, while slightly cooled, remains above target levels. This, combined with divergences in policy and market confidence, could lead the market into a period of directionless volatility. In the short term, the focus for Bitcoin (BTC) is on the effectiveness of the $104,800 support area, where liquidity accumulation is observed. The upper resistance is identified at $110,000. Analysts advise observing the PCE results and market reactions closely, exercising caution in response to potential fluctuations, and being prepared for risk management and asset allocation.