Introduction

The global markets are once again on edge as fresh US economic data reshapes expectations for Federal Reserve policy. A stronger economy, sticky inflation, and revised GDP figures have weighed heavily on both stocks and cryptocurrencies. Bitcoin, Ethereum, and XRP are all under pressure as traders await the next PCE inflation report, the Fed’s preferred gauge.

🏛️ Inflation Watch: CPI, PPI & PCE

CPI (Consumer Price Index): Recent CPI readings came in hotter than expected, reinforcing concerns that inflation remains persistent.

PPI (Producer Price Index): Producer prices are also rising, signaling potential upward pressure on consumer prices in the coming months.

PCE (Personal Consumption Expenditures): The next PCE release is expected to show a 0.3% monthly rise and ~2.7% annual rate. Core PCE (excluding food & energy) is hovering around 2.9% YoY.

💡 Impact: If PCE comes in higher than forecasts, the Fed may delay rate cuts further. If it comes in softer, rate cut bets for late 2025 could rise again.

📈 US Stock Market Recap

The S&P 500, Dow Jones, and Nasdaq all ended the week slightly lower after hitting record highs earlier this month.

Rising Treasury yields and inflation fears pressured tech stocks the most.

Investors are rotating into financials and cyclicals, waiting for clarity from the Fed.

⚡ Crypto Market Update:$BTC ,$ETH &$XRP

The crypto market faced heavy selling pressure this week, with over $1.5 billion in liquidations as leveraged positions were wiped out.

$ (BTC): Dropped below $111,000, marking its lowest point in two weeks.

Ethereum (ETH): Slipped under $4,000, currently near $3,924.

XRP: Fell around 2–3%, trading near $0.55–0.58.

🔑 Key Levels to Watch

Bitcoin (BTC):

Support: $110,000

Resistance: $115,000

Ethereum (ETH):

Support: $3,850

Resistance: $4,050

XRP (XRP):

Support: $0.52

Resistance: $0.60

📌 If these support levels break, selling pressure could intensify. On the flip side, a strong bounce near resistance would signal renewed momentum.

Market Takeaway

The intersection of sticky inflation + Fed policy caution + crypto liquidations has created a volatile environment for traders.

If PCE data comes softer than expected, risk assets (stocks & crypto) could see a strong rebound.

If PCE comes in hot, markets may face another wave of selling.$