Tomorrow’s Personal Consumption Expenditures (PCE) data is a key inflation indicator closely watched by the Federal Reserve (Fed), potentially increasing market volatility. Recent negative employment and inflation data have tempered expectations for aggressive interest rate cuts, despite the Fed’s anticipation of 75 basis points reduction throughout the year, which is still below current market expectations.
The PCE data is pivotal ahead of next week’s Fed meeting, with interest rates expected to remain unchanged. However, the market will closely monitor the first statements of the year by Fed Chair Jerome Powell. The current optimism in the market, especially reflected in Bitcoin (BTC) and altcoin prices, exceeds the Fed’s forecasts.
Should the Fed provide clearer guidance on interest rates and adopt a hawkish stance next week, this could further temper market optimism, signaling potential declines in risk markets. Meanwhile, cryptocurrency volumes are stabilizing below $50 billion, and the cumulative value of cryptocurrencies could fail to maintain the $1.51 trillion support level, possibly leading to a deeper dip for BTC and a downward pull for altcoins in the coming weeks.
SHIB has been fluctuating between the support and resistance lines of a broad parallel channel since April last year. It recently failed to sustain above the $0.000011 resistance line, retreating to the channel’s midpoint as expected. SHIB’s price could potentially fall to $0.00000761 and $0.00000641 if it closes below $0.00000877.
XRP Coin faces not only general market negativity but also apprehension over the expected mass appeals starting this year. If the court changes its view on secondary market sales not being securities, even if unlikely, it could trigger a new negative process for all altcoins. XRP Coin price could fall to $0.4736 if BTC fails to hold the $40,400 support, with a further support level at $0.41.