US consumer spending increased by 0.3% in May, defying rising inflation. Prices rose 4.1% year-on-year, the fastest in over three years, yet consumers continued to spend, potentially pressuring the Federal Reserve on interest rates.
Bitcoin is heading into a rare macro window where the first reaction may age fast. The Federal Reserve is scheduled to conclude its April meeting on April 29, with the FOMC decision and press conference landing that afternoon. The next morning, the US Bureau of Economic Analysis is scheduled to release the first quarter GDP and […] The post This week Bitcoin will face major volatility across a key 48 hour period: Fed first, GDP and PCE right after appeared first on CryptoSlate.
Bitcoin is heading into a rare macro window where the first reaction may age fast. The Federal Reserve is scheduled to conclude its April meeting on April 29, with the FOMC decision and press conference landing that afternoon. The next morning, the US Bureau of Economic Analysis is scheduled to release the first quarter GDP and […] The post Why this week could reprice Bitcoin in 48 Hours: Fed first, GDP and PCE right after appeared first on CryptoSlate.
Oil prices have spiked due to Middle East tensions, threatening to keep US inflation above the Fed's 2% target and complicating the central bank's rate path. The Strait of Hormuz saw shipping nearly halt on April 20 after warning shots and a ship seizure. St. Louis Fed President Alberto Musalem and New York Fed President John Williams have both warned about inflation pressures from higher energy costs. The Fed meets April 28-29, followed by GDP and PCE data April 30, creating a three-day window that tests the market's easing narrative. Bitcoin, which trades alongside liquidity and rate expectations, may need to reprice if higher-for-longer persists.
Rising oil prices due to geopolitical tensions in the Strait of Hormuz are challenging the Federal Reserve's inflation targets, potentially forcing a 'higher-for-longer' interest rate stance that threatens the bullish outlook for Bitcoin and risk assets.
