Bitcoin trades flat as US core PCE inflation remains steady as expected
Quick Take
- Bitcoin traded flat as U.S. Personal Consumption Expenditures (PCE) inflation remained steady at 2.7% on a yearly basis in April.
- Equity indices gained in pre-market trading after the U.S. inflation print renewed hopes that the end of higher-for-longer rates may be in sight.
Bitcoin 
BTC
-2.42%
remained largely unmoved despite equity markets posting gains after another U.S inflation print was in line with expectations.
The largest digital asset by market cap's price has increased a muted 0.7% in the past 24 hours and was changing hands for $68,738 at 9:26 a.m. ET, according to The Block’s Price Page. Similarly, the GM30 Index, representing a selection of the top 30 cryptocurrencies, increased by 0.55% to 144.92 in the past day.
On Friday the U.S. Bureau of Economic Analysis reported that inflation in the country, as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, held steady at 2.7% on a yearly basis in April.
Stock futures climbed after the latest PCE inflation report, which was in line with economists' expectations. Dow Jones Industrial Average futures ticked higher 0.2%, S&P 500 futures were up 0.3%, while the NYSE Composite increased by 0.32% in pre-market trading.
Inflation remains sticky
However, Nansen.ai Principle Research Analyst Aurelie Barthere stressed that inflation remains sticky
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Barthere said that two Fed rate cuts in 2024 are already priced into the market. The analyst added that there are "sustained downside risks the longer we stay in this high-rate regime."
"A growth slowdown would not be positive for crypto. In the mean time we’re tactically constructive on crypto but alert to signs of weak growth," Barthere said.
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