The recent Bitcoin price dip to $58,189 on June 25 sent shockwaves through the cryptocurrency market, but it didn't last long as prices rebounded towards $60,100.
The Federal Reserve's preferred inflation gauge, PCE, came in at a headline of 4.1% year over year and a core of 3.4%, with a monthly headline of 0.4% versus a 0.5% estimate, which was roughly in line with expectations.
According to Matt Mena, senior crypto research strategist at 21Shares, the print 'is a brief exhale' but still leaves Bitcoin without a new bid as headline PCE is over double the Fed's 2% target.
The June FOMC statement kept rates at 3.50%-3.75%, and 17 of 18 participants judged inflation uncertainty to be above normal, with risks weighted to the upside.
Can-Luca Köymen, investment strategist at Sygnum Bank, described the current policy environment as a 'print-by-print Fed,' where core PCE drives decisions more than CPI.