🚨 PCE 10 PM tonight – The index that could determine the direction of Crypto in the short term!
PCE (Personal Consumption Expenditures) is the preferred inflation index of the FED, as it closely reflects the actual consumption levels of the American people.
And tonight at 10 PM, PCE will be announced – a highly significant event for the Crypto market.
🔥 Why is PCE so important?
-FED relies on PCE to decide interest rates → If PCE decreases, it is likely that the FED will loosen, supporting the risk asset market.
-Inflation cools down → Money tends to flow back into the Crypto market.
-Inflation rises again → FED may delay cutting interest rates → Crypto is prone to sell-offs.
-PCE is not just macro news, but an index that directly affects interest rate expectations, where Crypto is the market that reacts the fastest.
🎯 Possible market scenarios
PCE lower than forecast → Bullish
• USD weakens
• Risk assets attract money
• BTC & Altcoins are likely to have a strong rebound
PCE higher than forecast → Bearish
• Risk sentiment decreases
• Crypto may adjust in the short term
• Especially Altcoins are more affected than BTC
===>> PCE is not just a trivial news item, but a key measure that decides whether the FED will cut interest rates soon.
And when interest rates change → Crypto changes immediately.
10 PM tonight is a very sensitive milestone. The market may experience significant volatility within minutes after the PCE is announced.
