Hot PCE, Strong GDP May Cloud Bitcoin’s Recovery
On the economic front, traders will watch Thursday’s Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation gauge, alongside an updated reading on US economic growth.
Headline PCE is expected to accelerate toward 3.8% year over year, while core PCE is seen holding near 3.3%–3.4%, still well above the Fed’s 2% target. Meanwhile, the Atlanta Fed’s GDPNow model points to a strong 4.3% annualized expansion in Q2, though the New York Fed’s nowcast is more cautious at 2.6%.
A hotter PCE print would strengthen the case for the Fed to keep interest rates higher for longer, especially if growth remains resilient. That could pressure risk assets like Bitcoin by lifting Treasury yields and reducing expectations for near-term rate cuts.
BEARISH ALERT! Binance Witnesses Bitcoin Inflows For 10 Days Straight
Binance has recorded nearly 10 straight days of net BTC inflows. Its weekly average inflows rose from 378 BTC on May 16 to 1,190 BTC, marking a more than threefold increase in less than two weeks.
The largest single-day inflow was over 3,600 BTC on May 18, according to data from CryptoQuant.