Bitcoin Price Volatility: Core PCE Deflator Publication Looms

The core PCE deflator for August will be published by the Bureau of Economic Analysis at 8:30 am ET today, and it's expected to have a significant impact on the crypto markets. Bitcoin is trading at $83,329, just 0.71 percent above its 24-hour low of $82,735. This narrow gap between the current price and the confirmed support level makes the market particularly sensitive to any changes in the inflation gauge.

The core PCE deflator measures the change in prices of goods and services consumed by US households, excluding food and energy. The Fed anchors its 2 percent inflation target explicitly to this index, making it a crucial indicator for the next rate decision on October 28. A higher core rate would indicate a more restrictive monetary policy, which could pull capital out of non-yielding assets like Bitcoin or Ethereum.

For investors holding leveraged long positions, the $82,735 level is critical to avoid liquidation. The market expects the August core rate to be around 0.3-0.5 percent against the previous month, but forecasts range widely, and the actual figure won't be known until 14:30 CEST.