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#PCEMarketWatch #PCEMarketWatch 🚀 Fed’s Preferred Inflation Metric Cools to 2.5% – Crypto Implications 🚀

The Core PCE Price Index (the Fed’s favored inflation gauge) cooled to 2.5% YoY in April 2025, down from 2.7% in March, signaling potential relief for risk assets like crypto.

📊 Key Takeaways:

- Headline PCE: +2.1% YoY (vs. +2.3% prior)

- Market Reaction: BTC/USDT held $104K as traders weighed delayed Fed rate cuts

- Fed Outlook: Odds of a September cut dip to 65% amid sticky services inflation

💡 Crypto Angle:

- Stablecoin Demand: USDT/USDC inflows may rise as investors hedge fiat volatility

- Altcoin Watch: ETH/USDT could benefit if inflation slows further (next target: $3,800)

⚠️ Warning: Core PCE remains above the Fed’s 2% target – macro uncertainty lingers.

Pro Tip: Monitor June 27’s PCE update – a drop below 2.4% could trigger a crypto rally.

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