The U.S. Bureau of Economic Analysis is set to release the latest Personal Consumption Expenditures (PCE) price index, with expectations that core inflation will remain between 2.8% and 2.9% year-over-year. This level is above the Federal Reserve's 2% target, indicating a "high-level consolidation" of inflation. Analysts predict the Fed will maintain current interest rates, with a 95% probability, as inflation dynamics show no significant change.
In the crypto market, Bitunix analysts suggest that the prolonged high interest rate environment will limit liquidity improvements in the short term, maintaining Bitcoin's correlation with risk assets. However, if inflation remains persistent and real interest rates peak, crypto assets could regain appeal as a hedge against monetary policy uncertainty.
Fed Expected to Hold Rates as Inflation Stagnates, Impacting Crypto Market
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