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Bitcoin, alts dip amid muted US PCE inflation outcome

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and the broader crypto market remained downbeat on Friday despite April’s Core Personal Consumption Expenditures index — the U.S. Federal Reserve’s preferred inflation gauge — matching analyst expectations and signaling the slowest yearly increase since early 2021.

The core PCE rose 2.5% year-over-year, while the broader PCE index slowed to 2.1%, below the 2.2% estimate, according to the Bureau of Economic Analysis.

Aurelie Barthere, principal research analyst at Nansen, said markets would likely shrug the news as a lagging inflation indicator.

“The April trend in U.S. inflation has been one of disinflation across various components,” Barthere told The Block. “So I expect a muted core PCE print would be benign for crypto.”

Financial markets stayed red after the PCE release. The total crypto market capitalization was down 2.8%, as liquidations topped $700 million in 24 hours, driven by bitcoin and ether price declines

President Donald Trump’s latest Truth Social post suggested incoming trade agitation with China. Trump claimed that China “totally violated” its agreement with the U.S., though the president didn’t share specifics.

"These kinds of headlines drive volatility across markets, but in crypto, where liquidity has been largely withdrawn since late 2024, even modest catalysts can cause amplified price swings, especially for altcoins,” Kretov added.$XRP

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