Bitcoin Loses 3% After New PCE Data

As Bitcoin sways like a ship in a macroeconomic storm, the threshold of $84,000 becomes a symbol of resistance. The latest data from the U.S. Personal Consumption Expenditures (PCE), published on March 28, injected a dose of stark realism into the market euphoria. Inflation, that tenacious specter, returns to haunt traders. But behind the numbers, one burning question remains: Can Bitcoin maintain its status as a safe haven, or will it succumb under the weight of economic indicators?

The PCE, a blow to crypto optimism

Despite declining inflation in the euro zone, the PCE figures for February in the United States had the effect of a cold wake-up call. With a monthly inflation rate of 0.3% and an annual increase of 2.5%, market expectations were met.

But the devil is in the details: the core PCE, the Fed’s preferred indicator, exceeded forecasts by 0.1% on both scales. A subtle push, but enough to reignite fears of prolonged tightening.

Underlying inflation is rising again, alerts The Kobeissi Letter on X. Worse still: January’s data has been revised upwards, tracing a worrying trajectory.

Some analysts even mention a stagflation scenario for 2025, a toxic mix of economic stagnation and rising prices. A context where Bitcoin, often seen as an anti-inflationary shield, appears paradoxically vulnerable.

The market reaction was immediate. BTC/USD plunged below $84,500 on Bitstamp, its lowest level in a week.

A 3% drop in just a few hours, reminding that cryptocurrencies do not sail outside of economic realities. For investors, the message is clear: the Fed may delay its rate cuts, extending the liquidity winter.

$84,000: A high-risk psychological support for Bitcoin

In this uncertain landscape, the threshold of $84,000 becomes a front line. Michaël van de Poppe, a renowned analyst, summarizes the stakes:

“If it breaks below $84,000, a test of $78,000–80,000 is likely.”

A scenario that would plunge Bitcoin back to its February lows, erasing weeks of consolidation.

Yet, not everyone sees the glass as half empty. For Daan Crypto Trades, this volatility is typical of a cooling market.

The RSI (Relative Strength Index) on the 12-hour charts indeed shows a breathlessness, but not yet a collapse.

Others, like TheKingfisher, mention a seasonal reset, anticipating the famous “sell in May and go away”. An age-old strategy that could weigh on prices in the weeks to come.

But Bitcoin has always played with paradoxes. Despite headwinds, it maintains an overall upward trend since January.

Spot ETFs, institutional purchases, and the upcoming reduction in mining rewards (halving) remain underestimated catalysts. However, the market seems caught between two fires: the hope for a new ATH (All-Time High) and the fear of a deep correction.