Bitcoin Trades Below $84,000 Ahead of PCE Inflation Data Release

WHY IT MATTERS

PCE stands for Personal Consumption Expenditures, and it measures how much prices are rising for everyday goods and services. Think of it like a thermometer for inflation. The Federal Reserve, which is the central bank of the United States, uses this data to decide whether to raise, lower, or hold interest rates. When interest rates are high, investors often move money into safer assets like bonds, and when rates are low, riskier assets like Bitcoin tend to attract more interest. This is why crypto traders pay close attention to inflation reports — they can signal what the Fed might do next, which can ripple through all financial markets, including crypto.