Bitcoin falls as US PCE market expectations beat

U.S. Department of Commerce "June PCE rose 2.6% year-on-year" announcement
BTC dropped to $115,000... Altcoins declined by about 5%
Experts say "Institutional buying slows down, possibility of further BTC decline"

The cryptocurrency market declined on the 1st as the U.S. Personal Consumption Expenditures (PCE) exceeded market expectations.

On the 31st, the U.S. Department of Commerce announced that the June U.S. PCE rose 2.6% year-on-year. The core PCE price index, excluding energy and food, rose 2.8% year-on-year and 0.3% month-on-month.

Both PCE and core PCE were 0.1 percentage points higher than the expert estimates compiled by Dow Jones.

As the PCE, a key economic indicator referenced by the Federal Reserve, exceeded market expectations, suggesting persistent inflation, Bitcoin (BTC) dropped to $115,000.

Altcoins recorded an average decline of about 5% following Bitcoin's drop.

◇Bitcoin = As of 4 PM on the 1st, the Bitcoin price on Upbit is 160.4 million won. Bitcoin's dominance is 61.85%.

According to on-chain analysis platform Sigbit, the long and short betting ratios in the Bitcoin futures market were 57.08% and 42.92%, respectively.

Experts predicted Bitcoin's decline. They analyze that institutional fund inflows are slowing down, making further decline possible.

10x Research warned in a recent report that "August has been the worst-performing month in the past 10 years" and that "the market may enter a correction phase".

They further analyzed that "Bitcoin is currently trading in an extremely narrow channel just before $120,000, with weakening upward momentum" and that "capital inflows to the Bitcoin network are also slowing down".

Marcus Tillen, an analyst at 10x Research, said, "Considering that listed companies are investing billions of dollars, the actual Bitcoin price increase is minimal," suggesting that "despite various support, the market may not meet expectations. Bitcoin will likely form a support line around $112,000".

◇Rising Coins = As of 4 PM on the 1st, the cryptocurrency with the largest increase from the previous trading day on Upbit was Siacoin (SC), rising about 10% from the previous day.

Siacoin is classified as a Web 3.0 token and is the native token of Sia, a blockchain platform providing shared cloud services. Siacoin is used to sustain the data storage space sharing ecosystem on the Sia platform. Those who share data storage capacity receive Siacoin as a reward.

◇Fear and Greed Index = The digital asset Fear-Greed Index provided by Alternative is 65 points, entering the 'Greed' stage. The greed stage is characterized by high price volatility and trading volume, indicating a price increase section. There is a high possibility of forming a short-term peak, so caution is advised when selling.

The Relative Strength Index (RSI) for cryptocurrencies provided by Sigbit is 32.4, recording a 'neutral' state. RSI determines the relative strength between upward and downward pressure on a specific asset price and is an indicator showing the overbought and oversold levels of a specific asset.

Reporter Seung-won Kwon ksw@blockstreet.co.kr