Bitcoin and US Stocks Plummet Despite Stable PCE Inflation Data

On May 31st, 2024, cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), along with major altcoins and US stocks, experienced a sharp decline, ending five-week winning streaks for the S&P 500 and the Nasdaq.

The Personal Consumption Expenditures (PCE) price index remained stable at 2.7% in April, unchanged from March, aligning with expert expectations. The month-over-month PCE also matched March’s figure at 0.3%, while the core monthly PCE came in at 0.2%, beating the expected 0.3%.

Despite the sideways movement in April inflation data, concerns remain for the Federal Reserve, as it’s uncertain when inflation will approach the 2% target. Additionally, U.S. economic growth was revised lower for the first quarter, raising concerns about when the Federal Reserve might start cutting interest rates.

Bitcoin saw a steep decline, hitting a low of $66,584 before rebounding to $67,286 at the time of writing. Ethereum also dropped to $3,719 and then bounced back to $3,768.

Despite the significant decline across the board, many experts remain optimistic about long-term growth for cryptocurrencies, with some predicting a Bitcoin target price of $150,000 by the end of 2024.

What are your thoughts? Would you take this opportunity to invest and increase your cryptocurrency and stock assets?

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