Reserve Dollar

Bitcoin

Reserve

<img decoding="async" width="1536" height="864" src="https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2.jpg" class="attachment-full size-full wp-post-image" alt="Crypto Market U.S. GDP PCE Inflation data" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2.jpg 1536w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-150x84.jpg 150w" sizes="(max-width: 1536px) 100vw, 1536px">
The crypto market has gone through volatile trading lately, as evidenced by the performances of the major cryptos like Bitcoin, Ethereum, Solana, and others. However, the investors lauded the Bitcoin Halving event last week, as noted by the surge in the crypto prices after the event. 
Now that <a href="https://coingape.com/glossary/bitcoin-halving/" target="_blank" rel="noopener">Bitcoin Halving</a> optimism is hovering in the market, investors are looking for cues on the potential impact of it on the crypto prices.&nbsp;Notably, amid this, macroeconomic concerns like the higher inflation and delay in the Fed’s rate cut plans have also weighed on the investors’ sentiment.&nbsp;Meanwhile, as the Fed grapples with the dilemma of a potential rate cut amid rising inflation, the crypto market braces for&nbsp;potential&nbsp;implications on sentiment and prices. 
<h2 id="span-data-preserver-spaces-true-key-span-span-data-preserver-spaces-true-economic-data-to-watch-this-week-span">Key&nbsp;Economic Data To Watch This Week</h2> 
The speculations in the crypto market intensify as it enters a crucial week. A flurry of economic data is scheduled for release this week, which might set the stage for future moves of the U.S. <a href="https://coingape.com/glossary/federal-reserve-system/" target="_blank" rel="noopener">Federal Reserve</a>. 
Meanwhile, the upcoming release of crucial economic indicators, including U.S. Gross Domestic Product (GDP) data and Personal Consumption Expenditure (PCE) <a href="https://coingape.com/education/what-is-inflation-what-causes-it-and-its-effects-4-examples-of-inflation/" target="_blank" rel="noopener">inflation</a> figures, has heightened speculation surrounding the Federal Reserve’s monetary policy stance. Scheduled for Thursday and&nbsp;Friday respectively, these data points will offer insights into the health of the U.S. economy and the trajectory of inflation. 
Notably,&nbsp;Should GDP data demonstrate economic resilience despite central bank rate hikes, it may reinforce the Fed’s hawkish stance, delaying potential rate cuts. Considering that, the <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener">cryptocurrency</a> market participants&nbsp;as well as&nbsp;the broader financial&nbsp;sector&nbsp;are eagerly waiting for the data. 
In addition, the crypto market&nbsp;is also focused&nbsp;on PCE inflation data, a pivotal metric for gauging inflationary pressures. With recent data indicating persistently elevated inflation levels, any further uptick in PCE figures could dissuade the Fed from immediate rate cuts.&nbsp; 
As the crypto market grapples with uncertainty surrounding monetary policy decisions, investor sentiment remains sensitive to economic indicators and central bank commentary. Besides, the investors will also closely watch the consumer sentiment data for potential cues on the current&nbsp;economic&nbsp;condition. 
Also Read: <a href="https://coingape.com/michael-saylor-microstrategy-may-reveal-more-bitcoin-buy-next-week/" target="_blank" rel="noopener">Michael Saylor’s MicroStrategy May Reveal More Bitcoin Buy Next Week</a> 
<h2 id="span-data-preserver-spaces-true-fed-s-hawkish-signals-rattle-crypto-market-span">Fed’s Hawkish Signals Rattle Crypto Market</h2> 
Recent remarks from <a href="https://coingape.com/fed-rate-cut-delay-sparks-crypto-volatility-concerns-despite-halving/" target="_blank" rel="noopener">Federal Reserve officials</a>, signaling a reluctance to implement immediate rate cuts, have dampened sentiment in the crypto market. For instance, New York Federal Reserve President John Williams emphasized the strength of the U.S. economy and downplayed the urgency for rate adjustments.&nbsp; 
While acknowledging the possibility of future rate reductions, the Fed’s cautious approach suggests a potential delay in easing monetary policy. Notably, these hawkish sentiments have reverberated throughout the crypto market, contributing to fluctuations in investor sentiment and asset prices.&nbsp; 
Meanwhile, amid the lingering uncertainties, the CME FedWatch Tool indicates a high probability of 96% of the central bank maintaining <a rel="nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">interest rates</a> at their upcoming meeting. As investors await crucial economic data releases and Fed decisions, the crypto market remains on edge, poised to react to developments that could shape its trajectory in the days ahead. 
Also Read: <a href="https://coingape.com/exclusive-coinbase-clo-says-sec-take-on-investment-contract-clashes-with-2nd-circuit-supreme-court/" target="_blank" rel="noopener">Coinbase CLO Says SEC’s Take On Investment Contract Clashes With 2nd Circuit, Supreme Court</a> 
The post <a href="https://coingape.com/crypto-market-gdp-pce-inflation-focus-amid-fed-rate-cut-dilemma/">Crypto Market: GDP &amp; PCE Inflation In Focus Amid Fed’s Rate Cut Dilemma</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Crypto Market: GDP & PCE Inflation In Focus Amid Fed’s Rate Cut Dilemma

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