Sat June 29, 2024 ▪
4
min reading ▪ by
Luc Jose A.
Inflation slowed in May in the United States. This development is generating keen interest among cryptocurrency investors, who are wondering how bitcoin and altcoins will react to this decline. Analysts offer different interpretations and outlooks after this economic shift.
US PCE inflation index falls to 2.6%
Recent economic data shows a decline in inflation in the United States, as measured by the Personal Consumption Expenditures (PCE) Price Index. The Bureau of Economic Analysis reported that PCE inflation rose to 2.6% from 2.7%, in line with market expectations. Additionally, core inflation, which excludes volatile items such as food and energy, also declined, falling from 2.8% to 2.6%. The decline represents the slowest pace of price growth since March 2021, signaling a cooling in inflationary pressures.
This moderation in inflation could have major implications for monetary policy going forward. Indeed, the likelihood of a rate cut by the Federal Reserve in September has increased, as indicated by the CME FedWatch Tool. Investors and economists are closely monitoring these developments, as a rate cut could boost financial markets and provide welcome relief after a period of rising costs.
Analysts’ predictions for bitcoin and altcoins
Michael van de Poppe, a well-known analyst in the crypto industry, predicts that bitcoin will continue to consolidate in the coming days. While he anticipates potentially higher returns for altcoins, he has yet to see any signs of an altcoin season. Trader and analyst Rekt Capital, who has over 471,000 followers on Twitter, points out that bitcoin is just below the top of the bull flag, suggesting continued consolidation before a possible breakout.
Bitfinex analysts, meanwhile, note continued uncertainty and increased volatility in the cryptocurrency market. They note that the presidential debate between Donald Trump and Joe Biden has intensified market movements, as investors digest the political implications.
According to analysts, the stance of Donald Trump, who recently embraced the cryptocurrency industry, favored the rise of memecoins like TRUMP and MAGA, with increases of 11% and 16%, respectively. These dynamics indicate that despite increased volatility, there is significant resilience and adaptability within the crypto market.
Recent inflation data brings a breath of optimism to the crypto market. With a possible interest rate cut by the Fed, bitcoin and altcoins could see a recovery after a period of consolidation, marking a new chapter in the current economic dynamics.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
