Bitcoin, alts dip amid muted US PCE inflation outcome
Quick Take
- Core Personal Consumption Expenditures (PCE) data showed annual inflation slipped to its lowest point since March 2021.
- Analysts said the macro print would be benign for cryptocurrencies as attention shifts to the Federal Reserve meeting in June.
Bitcoin and the broader crypto market remained downbeat on Friday despite April’s Core Personal Consumption Expenditures index — the U.S. Federal Reserve’s preferred inflation gauge — matching analyst expectations and signaling the slowest yearly increase since early 2021.
The core PCE rose 2.5% year-over-year, while the broader PCE index slowed to 2.1%, below the 2.2% estimate, according to the Bureau of Economic Analysis.
Aurelie Barthere, principal research analyst at Nansen, said markets would likely shrug the news as a lagging inflation indicator.
“The April trend in U.S. inflation has been one of disinflation across various components,” Barthere told The Block. “So I expect a muted core PCE print would be benign for crypto.”
Financial markets stayed red after the PCE release. The total crypto market capitalization was down 2.8%, as liquidations topped $700 million in 24 hours, driven by bitcoin and ether price declines, per CoinGlass data.
The GMCI 30 Index, which tracks the 30 largest cryptocurrencies by market cap, slid over 3%. Altcoin leaders like Ripple-related XRP, SOL, and ADA, and Dogecoin dropped at least 4% on May 30, according to The Block's price page. U.S. stocks and futures markets traded similarly, while Blockchain equities like Coinbase (COIN) and Marathon Digital (MARA) followed broader market cues.
Macro overhang
Dr. Kirill Kretov, CoinPanel’s senior automation expert, said that persistent macro jitters, including political tension, continue to drive market caution.
“Much of this movement is being triggered by macro uncertainty, especially political announcements from the U.S. president’s office,” Kretov told The Block on Friday.
President Donald Trump’s latest Truth Social post suggested incoming trade agitation with China. Trump claimed that China “totally violated” its agreement with the U.S., though the president didn’t share specifics.
"These kinds of headlines drive volatility across markets, but in crypto, where liquidity has been largely withdrawn since late 2024, even modest catalysts can cause amplified price swings, especially for altcoins,” Kretov added.
With PCE data now absorbed, analysts point to the June 17–18 FOMC meeting as the next key catalyst. The CME FedWatch tool shows markets pricing in a 97.9% probability that the Fed will hold rates steady.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
