Fed's PCE Data Release: Bitcoin (BTC) Initial Reaction and Market Interpretation

Against the backdrop of current US-Iran geopolitical tensions, Bitcoin (BTC) is fluctuating around $71,000. The potential conflict between the two countries has driven up oil prices, indirectly raising concerns about inflation. Analysts fear that the US Federal Reserve (FED), which has long been trying to bring inflation down to its 2% target, may face renewed upward pressure due to rising energy prices. The market widely anticipates that the Fed may delay interest rate cuts, or even raise rates due to inflation risks. Against this backdrop, the closely watched January Personal Consumption Expenditures (PCE) data has been released. This data is an important reference indicator for the Fed when making interest rate decisions and is also considered a key leading indicator for measuring inflation. Specific data shows: Core Personal Consumption Expenditure Price Index (Annual): Actual 3.1% – Expected 3.1% – Previous 3.0% Core Personal Consumption Expenditure Price Index (Monthly): Actual 0.4% – Expected 0.4% – Previous 0.4% Personal Consumption Expenditure Price Index (Annual): Actual 2.8% – Expected 2.9% – Previous 2.9% Personal Consumption Expenditure Price Index (Monthly): Actual 0.3% – Expected 0.3% – Previous 0.4% How did Bitcoin (BTC) react initially?