Bitcoin Begins to Recover After Lates U.S. Inflation Report

Bitcoin and other cryptocurrencies experienced significant declines after Federal Reserve Chairman Jerome Powell made hawkish remarks, signaling a continued tight monetary policy.

As a result, Bitcoin dropped below $93,000, before the release of the latest Personal Consumption Expenditures (PCE) data, a key inflation indicator closely watched by the Federal Reserve when making interest rate decisions.

For November, the Core Personal Consumption Expenditure Price Index (YoY) came in at 2.8%, matching the previous month’s figure and falling slightly below the expected 2.9%.

On a monthly basis, the Core PCE Price Index rose by just 0.1%, under the expected 0.2% and lower than the previous 0.3%.

The overall PCE Price Index, which reflects the general cost of goods and services, increased by 2.4% year-over-year, slightly below the expected 2.5%, up from 2.3% in the prior month.

On a monthly basis, the PCE index showed a 0.1% rise, which met expectations but was a decline from the previous month’s 0.2% increase.

After the inflation data was released, Bitcoin regained some bullish momentum, surging above $97,000, highlighting crypto investors’ long-term optimism.