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Traders Eye $120K Ahead of Key U.S. Personal Consumption Expenditure Inflation Report
Bitcoin is holding support at $109K ahead of the U.S. Personal Consumption Expenditure (PCE) inflation report, scheduled for release on September 26.
- Weaker-than-expected PCE growth could accelerate the move toward the $120K–$125K range.
- The market is betting on Fed easing after PCE; traders expect Bitcoin’s uptrend to resume.
- On Friday morning, Bitcoin stabilized around $109,000 as markets awaited the release of PCE inflation data at 8:30 a.m. ET, due later today.
The focus now is not on speculation about the first rate cut but on confirmation that the Fed has already delivered such a cut. On September 17, the Federal Reserve lowered the benchmark rate by 0.25 percentage points, setting the target range at 4.00–4.25%.
Weak labor market data has heightened the tension. Nonfarm payrolls rose by only 73,000 in July, well below consensus estimates. Previous months’ figures were revised downward, sparking concerns about a slowdown in hiring.
In earlier remarks, Powell noted that employment risks had become more balanced, acknowledging that inflation and labor market dynamics should guide future Fed actions.
Thus, today’s PCE data could have a significant impact on Bitcoin, as weaker numbers may reinforce expectations of monetary easing, potentially sparking a rally. At the same time, stronger data could dampen sentiment and put pressure on prices.
Bitcoin Price: Testing Support at $109K
According to CoinMarketCap, ahead of the release, Bitcoin fell 2.16% in the past 24 hours to $109,542. The asset reached $111,850 before reversing late in the session. As a result of the decline, its market capitalization stood at $2.18 trillion.
The pullback was accompanied by a sharp increase in trading volume: turnover rose nearly 43% to $73.74 billion, indicating that investors are actively repositioning around key support levels.
Chart data shows that the leading cryptocurrency is trading near $109,000. However, analysts point to this level as short-term support, and a recovery to $111,000 is needed to restore bullish momentum.
Sentiment and Odds: Markets Expect Further Rate Cuts
Prediction markets reflect cautious sentiment. On Myriad, 67% of traders expect a drop to $105,000 before any rebound, while fewer traders are betting directly on $125,000.
Jake Kennis (Nansen) noted that despite the recent rate cut, today’s release of Personal Consumption Expenditure (PCE) data remains critically important, as it could influence the pace and scale of further easing. Softer data would strengthen confidence in additional rate cuts, while stronger data could raise doubts.
See also: "Yield-Bearing Version of XRP, mXRP, Sold Out in One Hour, Strobe Finance Expands Supply Cap"
