#USCorePCEMay

Why does this data move the markets (and cryptos)?

Today the Core Personal Consumption Expenditures Price Index (Core PCE) for the United States for May was released and, as every month, cryptocurrency, stock, and futures traders are focused on one question:

👉 How strong is inflation and how will the Federal Reserve react?

🔍 What is the Core PCE?

The Core PCE is the Fed's favorite inflation indicator because it excludes the volatile prices of food and energy, providing a clearer view of underlying inflation in the economy.

A data point below expectations is often interpreted as positive for risk assets such as Bitcoin, Ethereum, or tech stocks. Why? It could indicate that inflation is easing, which reduces the pressure to raise interest rates.

🚀 What does this mean for crypto?

Lower inflation = greater appetite for risk

Bitcoin and other assets tend to benefit when interest rates decrease or remain stable.

The dollar loses strength

If the market perceives that the Fed will not raise rates further, the dollar may weaken. This drives up the prices of assets like BTC or ETH.

Liquidity is reactivated

If there is an expectation of more relaxed monetary policies, institutional investors tend to rotate capital into alternative assets like cryptocurrencies.