US Economic Pressures Affect Bitcoin Outlook

The United States is experiencing an economic contraction after a long period, posing challenges for Federal Reserve strategies. This development raises important questions for cryptocurrency enthusiasts as they navigate the volatile financial landscape. This week, the release of US Personal Consumption Expenditures (PCE) figures will receive significant attention amid market uncertainty. What is driving the decline in Bitcoin?

The recent drop in Bitcoin is attributed to concerning US economic indicators and statements from Donald Trump, who described the current conditions as a "Biden market." With a downward trend reflected in job data and negative growth figures, the struggles of the stock market reflect these pressures. Core Personal Consumption Expenditures data, expected at 2.6%, mirrors last month's rate of 2.8%. How do Personal Consumption Expenditures figures affect the market?

The Personal Consumption Expenditures data came in largely in line with high expectations, recording a year-on-year increase of 2.3%, while the core Personal Consumption Expenditures index remained in line with expectations at 2.6%.

- Monthly US Core Personal Consumption Expenditures Price Index: 0.0% (expected 0.1%, previous 0.4%)

- Monthly US Personal Consumption Expenditures Price Index: 0.0% (expected 0.0%, previous 0.3%)