Bitcoin traded flat over the past 24 hours, despite stocks edging higher as investors digested new personal consumption expenditures price index data, which showed inflation is cooling.
The morning equity rally comes after Friday's U.S. Commerce Department report showed that inflation in May slowed to its lowest annual rate since 2021. The core PCE index, which excludes the more volatile food and energy prices, rose by only 0.1% last month and by 2.6% over the past year, matching economists estimations.Market participants have been closely monitoring inflation data to predict when the U.S.
The U.S. Federal Reserve targets a 2% inflation rate and began raising interest rates in March 2022. The Fed last increased rates in July 2023 and has since maintained them at the benchmark overnight borrowing level range of 5.25%-5.50%, the highest in approximately 23 years.According to Bitfinex analysts, bitcoin and the wider cryptocurrency market have been exhibiting a mix of uncertainty and volatility since Wednesday's presidential election debate between Donald Trump and Joe Biden.