Key takeaways:
- U.S. Core PCE inflation rises to 2.7% in May, as expected to 2.6%.
- S&P 500 hits new all-time-high, up 0.7% in the Friday session.
- BTC moves in tandem with S&P 500 near $107.0 level.
Bitcoin (BTC) price erases early gain on Friday following the release of the U.S. Personal Consumption Expenditure (PCE) the Federal Reserve’s (Fed) favorite gauge of inflation. PCE price index rose by 0.1% in May, the same as in April, and in line with the market consensus.
The S&P 500’s new all-time high of 6,187 caps a remarkable comeback from the April selloff. The Index surpassed its February peak of 6,164.
Market participants still asses the impact of the inflation data, as the reading suggests that the price pressure remains moderate enough to keep Fed rate cuts bet on the table.
The dollar edged lower as the initial reaction to the data. However, picked up the momentum in the later trade.
Dollar and Bitcoin hold an inverse correlation. Bitcoin prices surrender the initial gains and fall below the $107 mark following the reversal in the dollar.
Bitcoin Chart
Source: Trading view
Bitcoin price show signs of exhaustion near $107 mark. The prices opened higher but could not sustain the gains and retreated below the mentioned mark. The momentum oscillators exhibit mixed signals with no directional bias.
Bitcoin is expected to trade in a consolidated range of $100.0-$110.0 in the short-term.
