BTC surpasses $66K after release of PCE data

Latest stats from the US Bureau of Economic Analysis reinforce expectations of a continued dovish policy stance, analysts say

article-image

pyatkevich_denis/Shutterstock modified by Blockworks

share

Bitcoin rose above $66,000 after analysts stated that Personal Consumption Expenditures (PCE) data had reinforced expectations of a continued dovish Fed policy stance.

BTC had retreated back below that level at 2 pm ET, but remained slightly up from a day ago.   

The surge past $66,000 came a little over an hour after the US Bureau of Economic Analysis published the August PCE data. The Federal Reserve’s preferred inflation gauge, the PCE figures showed a slight increase of 0.1% from July (rising 2.2% year over year).

Morningstar senior economist Preston Caldwell had predicted a 0.15% month-over-month PCE boost. FactSet consensus estimates had pegged a 2.7% jump on an annual basis.

Any significant rise above estimates could have dampened the prospect of further rate cuts by the Fed, wrote Derren Nathan, head of equity research at Hargreaves Lansdown, in a Friday note. 

Read more: A look at central bank rate decisions around the world

“Today’s lower-than-expected PCE numbers have strengthened the dovish sentiment sparked by last week’s rate cut, fueling optimism that inflation pressures are cooling faster than anticipated,” said 21Shares crypto research strategist Matt Mena.

The US central bank’s current forecast suggests another half-point reduction by the end of 2024, Nathan said. 

The probability of a Fed rate cut amounting to 50 basis points at its November meeting was at nearly 57%, as of 2 pm ET — up from about 49% a day ago, CME Group data shows. The Fed has another meeting in December. 

Mena expects the stage is set for a BTC to possibly retest the range between $68,000 and $70,000 — noting other global factors at play, such as China’s recent liquidity injection.

Mena had noted that, as of early Friday, the CoinDesk 20 Index was up nearly 8% this week, compared to a less than 1% gain by the S&P 500. 

At 2 pm ET, BTC was up about 1% from 24 hours ago. The S&P 500 was roughly flat over that span. 

Mena added: “This highlights the growing confidence in BTC and digital assets as investors increasingly seek alternative stores of value and high-yield opportunities amid a favorable macroeconomic backdrop.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your day with top crypto insights from David Canellis and Katherine Ross.
  • Forward Guidance: Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin.
  • 0xResearch: Get alpha directly in your inbox — market highlights, charts, degen trade ideas, governance updates, and more.
  • Lightspeed: All things Solana, in your inbox, every day from Jack Kubinec and Jeff Albus.
  • The Drop: The newsletter for crypto collectors and traders, covering games, tokens, apps, memes and more.
Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (4).png

Research

Wormhole Settlement allows for a highly scalable liquidity venue to fill user intents into a multichain, multi-VM future. By concentrating solvers’ balance sheets on Solana, transaction costs associated with solvers rebalancing inventory across destinations are eliminated. With the ability to settle bridging, swapping, and arbitrary interactions, without the costs and frictions of fragmenting solver liquidity, Wormhole Settlement has the opportunity to settle a large share of volumes in the crosschain interoperability market with a beneficial framework for both users and solvers. 

article-image

Sovereign states aren’t coming — they’re already here

article-image

Dinocoins like XRP and ADA are getting more attention, and it’s not just because of President Trump

article-image

Anthony Pompliano looks for folks who are running away from something rather than towards it

article-image

The Solana world has worked itself into a frenzy over SIMD-0228

article-image

Industry watchers weigh in on Trump’s Thursday night executive order

article-image

The new game lets you embark on quests, collect loot and socialize