Bitcoin · Federal Reserve (FED) · Bitcoin ETF · Kevin Warsh · CryptoSlate
New US inflation report exits Bitcoin with a problem the Fed cannot solve
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Headline PCE inflation rose 3.8% in April from a year earlier, its hottest pace in two years and nearly double the Federal Reserve's 2% goal, while core PCE held at 3.3%, its highest reading since October 2023.
Key facts
- Bitcoin ETFs logged their ninth consecutive day of outflows on May 28, shedding another $229 million as BlackRock's IBIT gave up close to $178 million on its own
- Bitcoin saw that combination of numbers as a problem, sliding toward $73,300 in the hours after Thursday's release and hovering near $73,000 through the weekend, down roughly 30% across the past year
- Headline PCE inflation rose 3.8% in April from a year earlier, its hottest pace in two years and nearly double the Federal Reserve's 2% goal, while core PCE held at 3.3%, its highest reading
- The monthly numbers ran cooler, with core easing to 0.2% against the 0.3% economists had expected
Summary
01 April PCE rose 3.8% year over year, while core PCE held at 3.3% and monthly core cooled to 0.2%. 02 The mixed report helped Bitcoin briefly, but stubborn annual inflation keeps Fed rate cuts unlikely and liquidity tight. 03 Traders now watch June 25 PCE, oil, and Bitcoin ETF outflows to see whether cooling or scarcity wins. The monthly numbers ran cooler, with core easing to 0.2% against the 0.3% economists had expected.