Will PCE inflation data big pump? Not necessarily!

The current market expects PCE to rise to 2.3%, with core PCE rising to 2.8%, which seems bearish. However, this is just the baseline expectation; if the data meets this level, it will have little impact on coin prices; only if it is higher than this will it be bearish, while lower than 2.3% and 2.8% would be bullish.

Tariffs typically drive up inflation, yet past CPI and PCE data often fall below expectations. Even Powell hinted at poor availability of government data during his speech. Therefore, this data is likely to meet expectations or even fall below them, with a possibility of data optimization.

The real variable is on July 8, when the tariff deadline will be postponed, and new tariffs will soon be imposed. Trump will also announce the specific amounts of the tariffs. This move could lead to a pullback in the U.S. stock market after the good news is fully reflected, and the cryptocurrency market will likely be affected as well. In this ever-changing situation, it might be better to let the dust settle for a while and patiently wait for the market to give the final answer.