The price of bitcoin went up and down by a few hundred dollars after the PCE numbers came out.
The US Personal Consumption Expenditures price index (PCE) increased by 0.1% in November compared to October and by 4.7% compared to a year ago.
As the world’s most powerful economy made the announcement, BTC reacted with minor price volatility.
The US Commerce Department outlined the PCE increase on Friday. The metric is typically the go-to point for the Federal Reserve, as it provides a clearer picture of consumer prices.
The 5.5% jump in the Core PCE (which includes food and energy) is slightly higher than the 4.7% estimation. The report also showed that general spending was also on the rise in November (0.1%) but not as much as in previous months (0.8%).
On the other hand, personal income increased by 0.4% in November, which is slightly lower than the October figures (0.7%).
Aside from the more well-known Consumer Price Index (CPI), the PCE is the other most frequently cited index for calculating inflation rates in the States.
Unlike the CPI announcements, which typically carry a heavy toll on BTC’s price, the PCE brought minor volatility.
The primary cryptocurrency dipped by a few hundred dollars from its familiar ground of $16,800 before it pumped to a daily high of over $16,900.
Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn
