Bitcoin Dips Below $85K as Hot PCE Data Sparks Inflation Fears
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The latest PCE inflation data showed a 0.3% core price increase in February, exceeding economists' expectations and sparking concerns about potential Federal Reserve interest rate hikes. This economic indicator caused declines across traditional and crypto markets, with Bitcoin falling 2.5% to around $84,700.
March 28, 2025 | 4:45 pm
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Bitcoin experienced a 2.5% price drop following the release of PCE inflation data, reflecting market sensitivity to potential monetary policy changes.
The unexpected rise in core PCE inflation (0.3% vs 0.2% expected) suggests persistent inflationary pressures, which could prompt more aggressive Federal Reserve interest rate policies. This typically negatively impacts risk assets like Bitcoin by increasing opportunity costs and reducing speculative investment.
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