Bitcoin Brushes Off US Inflation Data as Interest Rate Expectations Modest

Bitcoin remained stable on Thursday despite mixed signals from US inflation data and interest rate announcements. The Personal Consumption Expenditures (PCE) index, a preferred measure of inflation by the Federal Reserve, showed its first monthly drop in six years, coming in at 3.7% year-over-year.

This was in line with market expectations, but some analysts remained cautious. Johns Hopkins economist Steve Hanke described inflation as 'the genie the Fed just can't put back in the bottle,' highlighting a mismatch between the current rate and the Fed's 2% target.

Bitwise CIO Matt Hougan forecast that future interest-rate announcements would have less impact on Bitcoin price performance, citing modest expected changes to interest rates. The Federal Reserve left interest rates unchanged at its latest meeting, with an emerging split among FOMC members regarding policy.