The latest report on U.S. Personal Consumption Expenditures (PCE) shows inflation easing to 3.7%. This marks a clear slowdown compared to previous months and has injected new momentum into the crypto market. Bitcoin responded sharply, climbing about 1.7% to $64,529 as traders shook off recent jitters.
Ethereum also gained ground, rising 2.1% to nearly $1,920, while other tokens like XRP surged over 3%. This uptick coincides with a broader risk-on sentiment in the market triggered by inflation data that hints at less aggressive Federal Reserve tightening ahead.
Market participants have been watching inflation closely as it directly impacts monetary policy decisions and consequently, crypto valuations. The cooling inflation figure suggests some relief from the rapid price increases seen earlier in the year, offering a boost to risk assets.