Bitcoin experienced a slight decline in its value, trading at $111,336, which reflects a 1.8% decrease over the past 24 hours and a 5.4% drop for the week. Investors are closely monitoring the upcoming release of the Personal Consumption Expenditure (PCE) inflation data, which is expected to play a significant role in shaping the Federal Open Markets Committee’s (FOMC) potential interest rate cuts.
In a recent survey conducted on Myriad, a prediction market platform, about 61% of users anticipate Bitcoin will dip to $105,000 before attempting to reach new highs, particularly as selling pressure is noted within the price range of $115,000 to $119,000. Analysts have differing views on how this major cryptocurrency, which continues to hold its ground above $111,000, may react to the impending economic indicators.
Jake Kennis, a senior research analyst at Nansen, stressed the importance of the upcoming PCE print, which serves as a key inflation measure for the Fed. He cautioned that any inflation reading exceeding the anticipated range of 2.7% to 2.9% year-over-year could provoke a more hawkish stance from the Fed, consequently exerting further pressure on the crypto markets. Conversely, a lower-than-expected inflation figure might set the stage for another interest rate cut, potentially lifting Bitcoin and the broader crypto landscape from their current stagnation.
Recent predictions from economists suggest that the Bureau of Labor Statistics’ upcoming PCE report could land closer to 2.99%. Current market sentiment indicates an 83.4% likelihood that the Fed will implement an interest rate cut during its next monthly meeting, a notable increase from just 8.1% to 16.6% in the past week regarding the potential for rates to remain stable.
John Glover, chief investment officer at Bitcoin lender Ledn, observed that despite market expectations leaning towards higher inflation, digital assets have faced notable downward pressure. He remarked on the recent wave of liquidations within the crypto space, suggesting that many traders may be closing out weaker positions. Glover highlighted a significant resistance level between $115,000 and $119,000, indicating that some investors are potentially cashing in on profits as they assess the end of the current bull run.
In contrast, Dom Harz, co-founder of the Bitcoin DeFi project BOB, offered a more optimistic perspective by encouraging a broader view of Bitcoin’s price stability. He noted that maintaining a price level above $110,000 as the third quarter of 2025 concludes signifies a growing trust among institutional investors in Bitcoin as a digital asset.
As traders continue to navigate the current market dynamics, the forthcoming inflation data will undoubtedly influence strategies and sentiment within the cryptocurrency sector.
