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▲ Bitcoin (BTC), Dollar ©CoinReaders
The virtual asset market immediately rebounded after the US August core Personal Consumption Expenditures (PCE) price index fell below market expectations. Bitcoin (BTC) recovered to $85,000, and major altcoins such as Solana (SOL) and Dogecoin (DOGE) also showed an upward trend over a 24-hour period. It is believed that signs of slowing inflation stimulated buying in risk assets, driven by expectations that it could reduce the burden on the Federal Reserve's (Fed) monetary policy.
According to CoinMarketCap data at 9:49 PM KST on September 30, Bitcoin rose 0.85% from 24 hours earlier to $85,004.19. In particular, it jumped 1.28% in the last hour, showing a prominent rebound immediately after the PCE announcement. Ethereum (ETH) rose 1.27% in one hour to $2,731.37 but fell 0.20% over 24 hours. XRP (Ripple) also rose 1.20% in one hour to $1.53, but it has not fully recovered its short-term adjustments, falling 1.09% over 24 hours and 2.06% over the past seven days.
The direct trigger that turned around market sentiment was the US August core PCE price index. The core PCE price index announced by the US Department of Commerce's Bureau of Economic Analysis (BEA) on that day rose 0.2% month-over-month, falling below the market expectation of 0.3%, and also rose 3.0% year-over-year, below the expected 3.3%. Core PCE is an indicator that shows underlying inflation trends by excluding volatile food and energy prices, and it is a key inflation indicator that the Fed closely monitors for monetary policy decisions. Lower-than-expected figures are interpreted as being favorable to risk assets, including virtual assets, as they can raise expectations of easing inflationary pressure and future interest rate burdens. The BEA was scheduled to announce August personal income and expenditure data on that day.
Altcoins also rebounded across the board immediately after the PCE announcement. Solana rose 1.54% in one hour, 0.69% in 24 hours, and 3.91% in the last 7 days to $121.47. BNB rose 1.17% in 24 hours to $774.78, Tron (TRX) rose 1.42% to $0.3401, and Dogecoin rose 1.25% to $0.09728. Zcash (ZEC) also rebounded 1.85% in one hour and 1.06% in 24 hours to $1,455.06, but it fell 10.98% over the past 7 days, showing the most significant decline. Hyperliquid (HYPE) rebounded 0.57% in one hour to $87.20 but fell 1.33% in 24 hours and 8.10% over the week.
What is noteworthy about this rebound is that most major coins rose simultaneously on a 1-hour basis. Bitcoin rose 1.28%, Ethereum 1.27%, XRP 1.20%, Solana 1.54%, and Zcash 1.85%, indicating a widespread upward trend immediately after the PCE announcement. However, 24-hour and 7-day returns vary by coin, so it is still premature to conclude a market-wide trend reversal; rather, it is strongly characterized as a short-term recovery in risk appetite due to lower-than-expected inflation data. In particular, as BTC has once again surpassed $85,000, which had acted as a recent resistance level, whether it can stably maintain this price point has emerged as a key observation point for short-term trends.
The key to the future market is whether the PCE slowdown will actually lead to changes in the Fed's monetary policy expectations. While lower-than-expected core inflation could ease interest rate burdens, a single inflation indicator does not determine the policy path. In the virtual asset market, the stabilization of Bitcoin at $85,000 and the sustainability of buying pressure immediately after the PCE announcement are crucial. If the 1-hour rebound connects to a 24-hour uptrend and major altcoins also expand their gains, it could confirm a broader recovery in market sentiment, but if buying pressure quickly weakens, it is necessary to consider the possibility that this movement may be limited to a short-term rebound immediately after the economic data release.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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