CoinDesk
Bitcoin slipped 0.3% to about $83,700 early Wednesday as traders awaited the August personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge. The reading is expected to show inflation quickened. Ether fell 0.7% to about $2,690, while XRP and TRX each gained less than 1%. HYPE dropped nearly 2%, the steepest decline among the major tokens cited.
Why it matters
Crypto demand indicators are weakening alongside a tense macro backdrop. CryptoQuant estimates Bitcoin spot demand shrank by about 170,000 BTC over the past 30 days, while growth in futures demand fell 90% since Sept. 14.
A hotter-than-expected PCE reading could add to bets on interest-rate hikes, after a bond selloff pushed 30-year Treasury yields to their highest since 2002. Brent crude rose above $103 a barrel and is up about 14% in September.
Market impact
The combination of thinner Bitcoin demand and pressure on bonds leaves crypto exposed to the inflation data. Micron Technology’s results after the U.S. close will also test AI-linked stocks that helped limit S&P 500 losses during the bond selloff.
Frequently asked questions
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How much has Bitcoin spot demand changed over the past 30 days?
CryptoQuant estimates Bitcoin spot demand shrank by about 170,000 BTC over the past 30 days.
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What happened to growth in Bitcoin futures demand?
CryptoQuant estimates growth in futures demand fell 90% since Sept. 14.
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Why are traders watching the PCE inflation report?
The PCE price index is the Federal Reserve’s preferred inflation gauge, and the August reading is expected to show inflation quickened.
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What market signals are adding to rate concerns?
Thirty-year Treasury yields reached their highest since 2002, while Brent crude rose above $103 a barrel and gained about 14% in September.
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Why do Micron’s results matter to the broader market?
Micron’s results will test AI-linked stocks that helped limit S&P 500 losses during the bond selloff.
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