Bitcoin spikes then whipsaws as U.S. PCE data in line with expectations

Quick Take

  • Bitcoin was trading around $20,280 today following PCE data.
  • Core PCE was in line with expectations at 0.5% month-on-month. 

Bitcoin traded up following consumer spending data in the U.S., before surrendering these gains as the market digested the latest economic data.

The monthly personal consumer expenditures (PCE) was 0.5%, in line with the consensus before release. The annual change in PCE was 6.2% in September.

Bitcoin was trading at $20,280 following the release. The leading cryptocurrency by market cap briefly spiked before trading lower, then rising again. Economic indicators have driven crypto prices over the past few months.

PCE measures the price people in the U.S. pay for goods and services, or those buying on behalf of others. The index captures inflation, or deflation, across a range of consumer goods.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

It is seen as the Fed's preferred measure of inflation, because it can reflect changes in consumer behavior, thus giving a more comprehensive overview of the inflation picture than the consumer price index (CPI). CPI was hotter-than-expected in September, up 0.4% month-on-month and 8.2% year-on-year.

Today's economic indicator follows yesterday's better-than-expected GDP data. The U.S. economy grew by 2.6% in the third quarter, countering suggestions by "doomsayers" that the economy was underperforming, President Joe Biden said.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Adam Morgan is a reporter covering cryptocurrency, financial markets, and economics – anything from price movements, earnings reports, and inflation to the U.S. Federal Reserve interest rate decisions and everything in between. Adam is based in London.