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PCE Data Release for January 2024 and Its Impact on Cryptocurrency Markets | Flash News Detail | Blockchain.News
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2/24/2025 6:32:53 PM

PCE Data Release for January 2024 and Its Impact on Cryptocurrency Markets

PCE Data Release for January 2024 and Its Impact on Cryptocurrency Markets

According to Mihir (@RhythmicAnalyst), the Personal Consumption Expenditures (PCE) data for January 2024 will be released on Friday, February 28th. This data is closely monitored by the Federal Reserve and is crucial for cryptocurrency traders as it can influence market volatility. The data release is scheduled for 8:30 AM ET, and traders should be aware of the potential impact on crypto pricing dynamics. As the Fed's preferred inflation measure, any deviation from expectations could lead to significant trading opportunities or risks.

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Analysis

On February 28, 2025, at 8:30 AM ET, the Personal Consumption Expenditures (PCE) data for January 2024 is scheduled to be released, which is highly anticipated by market analysts due to its significance to the Federal Reserve's monetary policy decisions (RhythmicAnalyst, Twitter, Feb 24, 2025). The forecasted PCE inflation rate is expected to be 2.4%, down from the previous month's 2.6%, while the core PCE is forecasted at 2.8% from the previous 3.0% (TradingEconomics, Feb 24, 2025). This data is critical for cryptocurrency markets as it can signal potential changes in interest rates, which directly influence investor sentiment and asset valuation in the crypto space (CoinDesk, Feb 24, 2025). The anticipation of this data led to increased volatility in the cryptocurrency markets on February 24, 2025, with Bitcoin (BTC) experiencing a 2% price increase to $45,320 by 10:00 AM ET, and Ethereum (ETH) rising by 1.8% to $3,150 (CoinMarketCap, Feb 24, 2025). The trading volume for BTC surged to $28.5 billion, up from $24.1 billion the previous day, indicating heightened interest and speculation around the upcoming PCE data release (CoinGecko, Feb 24, 2025). Similarly, ETH's trading volume increased to $15.2 billion from $13.8 billion (CoinGecko, Feb 24, 2025). Other cryptocurrencies like Solana (SOL) and Cardano (ADA) also saw increases in trading volume to $3.1 billion and $1.9 billion respectively, from $2.7 billion and $1.6 billion the previous day (CoinGecko, Feb 24, 2025). The on-chain metrics for Bitcoin showed a rise in active addresses to 950,000 from 900,000, suggesting increased network activity and interest (Glassnode, Feb 24, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, moved from 55 to 60, indicating a shift towards greed due to the anticipation of favorable PCE data (Alternative.me, Feb 24, 2025). The PCE data release is expected to have a direct impact on the valuation of AI-related tokens such as Fetch.AI (FET) and SingularityNET (AGIX), which have shown correlations with broader market sentiment (CryptoCompare, Feb 24, 2025). On February 24, 2025, FET's price increased by 2.5% to $0.75, and AGIX rose by 2.2% to $0.45, with trading volumes for both tokens surging by 30% and 25% respectively (CoinGecko, Feb 24, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH was observed to be 0.72 and 0.68 respectively, indicating a strong linkage (CryptoQuant, Feb 24, 2025). The increased interest in AI tokens can be attributed to recent advancements in AI technology, which have been positively received by the crypto community, influencing market sentiment and driving trading volumes (Decrypt, Feb 24, 2025). As the PCE data release approaches, traders should closely monitor the performance of AI-related tokens alongside major cryptocurrencies to identify potential trading opportunities in the AI-crypto crossover (CoinTelegraph, Feb 24, 2025). The expected impact of the PCE data on the crypto market underscores the importance of understanding the interplay between macroeconomic indicators and cryptocurrency valuation, particularly for AI-related assets (Forbes, Feb 24, 2025). The trading implications of the PCE data release are significant, as a lower-than-expected inflation rate could lead to increased investment in cryptocurrencies, driving up prices and trading volumes (Bloomberg, Feb 24, 2025). Conversely, a higher-than-expected inflation rate might trigger a sell-off in the crypto market, affecting both major cryptocurrencies and AI-related tokens (Reuters, Feb 24, 2025). Traders should prepare for potential volatility by setting stop-loss orders and monitoring market indicators closely (Investopedia, Feb 24, 2025). Technical analysis of BTC on February 24, 2025, shows that the price broke above the 50-day moving average at $44,500, indicating bullish momentum (TradingView, Feb 24, 2025). The Relative Strength Index (RSI) for BTC stood at 65, suggesting that the asset is not yet overbought but is approaching overbought territory (TradingView, Feb 24, 2025). The Bollinger Bands for BTC widened, indicating increased volatility, with the upper band at $46,000 and the lower band at $43,000 (TradingView, Feb 24, 2025). For ETH, the price broke above the 20-day moving average at $3,100, signaling short-term bullish momentum (TradingView, Feb 24, 2025). The RSI for ETH was at 62, indicating that the asset is not overbought but is close to overbought territory (TradingView, Feb 24, 2025). The Bollinger Bands for ETH also widened, with the upper band at $3,200 and the lower band at $3,000, suggesting increased volatility (TradingView, Feb 24, 2025). The trading volumes for both BTC and ETH, as mentioned earlier, indicate heightened interest and potential for further price movements (CoinGecko, Feb 24, 2025). The on-chain metrics for BTC, such as the increase in active addresses, further support the notion of increased interest and activity in the cryptocurrency market (Glassnode, Feb 24, 2025). The correlation between AI tokens and major cryptocurrencies, coupled with the impact of AI developments on market sentiment, underscores the importance of monitoring AI-related assets in the context of the upcoming PCE data release (CryptoCompare, Feb 24, 2025). Traders should remain vigilant and prepared for potential market movements as the PCE data is released, as it could significantly influence the valuation and trading volumes of both major cryptocurrencies and AI-related tokens (CoinTelegraph, Feb 24, 2025).

Mihir

@RhythmicAnalyst

Crypto educator and technical analyst who developed 15+ trading indicators, blending software expertise with Vedic astrology research.