Bitcoin (BTC) remains steady as traders await monthly close
Bitcoin (BTC) continued to hold its ground despite the release of new macro data in the United States. Instead, traders focused on the upcoming monthly close.
PCE results in line with expectations
The Personal Consumption Expenditures (PCE) Index, considered the Federal Reserve’s preferred inflation metric, was released and showed results that were broadly in line with expectations. This reinforced the declining inflation and supported the Fed’s monetary tightening.
The Kobeissi Letter, a financial commentary resource, questioned whether the falling inflation would lead to interest rate cuts. However, it remained cautious about the Fed’s potential pivot.
Market expectations of Fed policy unchanged
The PCE results did not significantly impact market expectations of Fed policy. Data from CME Group’s FedWatch Tool still showed nearly unanimous expectations of a rate hike pause continuing next month.
Bitcoin sees positive gains in November
In contrast to previous years, Bitcoin saw a positive performance in November. At the time of writing, BTC/USD was up nearly 10% for the month, marking it as the first “green” eleventh month since 2020. If it closes above $37,660, it will reach its highest level since May 2022.
Analysts pointed to Bitcoin’s relative strength index (RSI) readings as a reason for bullish sentiment. Traders are closely watching the monthly close for further indications of Bitcoin’s upward movement.
Hot Take: Bitcoin holds steady despite macro data release
Bitcoin demonstrated resilience as it brushed off the impact of fresh macro data from the US. Traders remained focused on the monthly close and market expectations for Fed policy. While the PCE results were in line with expectations and reinforced declining inflation, questions remained about the potential for interest rate cuts. Meanwhile, Bitcoin saw positive gains in November, making it the first “green” eleventh month since 2020. Traders are optimistic about Bitcoin’s bullish outlook based on the RSI readings and are closely watching the monthly close for further confirmation.
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