The recent release of U.S. Personal Consumption Expenditures (PCE) data has created a cautious market environment, impacting Bitcoin's price movement. The upward trend in PCE, a key inflation indicator for the Federal Reserve, suggests that the Fed might maintain its current interest rate stance, which could weigh on Bitcoin. Additionally, Fed member Bowman's cautious remarks about the economic impacts of current policies have added to the uncertainty, leading to a slight decline in Bitcoin's price. Despite these challenges, the approval of Bitcoin exchange-traded funds and growing institutional interest are seen as positive developments that could support Bitcoin's price in the future. However, the market remains focused on U.S. labor market data, as any signs of weakness could prompt the Fed to consider further monetary easing, potentially benefiting Bitcoin.
The 2x Bitcoin Strategy ETF (BITX) experienced a slight decline, dropping 0.65% to $62.73 at 1:00 PM on Friday, January 31.