Floki, Wormhole, Pepe pumps as US PCE inflation nears 2%

Cryptocurrencies, stocks and other risky assets received a new catalyst on Friday, September 27, after the US government released encouraging inflation data.

PCE inflation in the US fell in August

While Bitcoin (BTC) remained stable above $65,000, altcoins such as Wormhole (W), Floki (FLOKI), Pepe (PEPE), and Shiba Inu (SHIB) rose over 15%. Dow Jones, S&P 500 and Nasdaq 100 index futures rose more than 25 basis points.

Data from the statistical agency showed that personal consumption expenditure fell from 0.2% in July to 0.1% in August, below the expected 0.2%. On an annual basis, it fell from 2.5% to 2.2%, marking the lowest level in the last two years.

Core PCE, which excludes volatile food and energy prices, also fell from 0.2% to 0.1% during the month.

These figures show that the Federal Reserve is approaching its 2.0% inflation target. As a result, the bank will likely continue to cut interest rates at its final two meetings of the year as the unemployment rate remains above 4%. The Fed had already reduced interest rates by 0.50% at its last meeting.

Other global central banks, including the Swiss National Bank, the European Central Bank and the Bank of England, have also adopted a dovish tone.

Historically, cryptocurrencies like Bitcoin, Ethereum, and Shiba Inu have performed well as the Fed lowered interest rates.

In addition, China, the world’s second largest economy, opened the door to money. On Tuesday the central bank cut a significant interest rate and lowered reserve rates; This is a move that would unlock over $100 billion to stabilize the stock market. Beijing is also considering providing additional stimulus worth over $150 billion.

CZ is released from prison

FTX is giving $16 billion back to people

Donald Trump to fire Gary Gensler

Companies are accumulating bitcoin

Banks create bitcoin accounts

Institutions bid maximum

Lowering interest rates and printing money

Governments mining and…

— Crypto Tea (@CryptoTea_) September 27, 2024

Release of Changpeng Zhao

Bitcoin, Wormhole and Pepe also rose as crypto investors await Changpeng Zhao’s release from custody.

Binance founder Zhao was serving a four-month prison sentence as part of a deal with the US government.

In addition to his sentence, Zhao was fined $50 million and relinquished his position as CEO of Binance. Binance was ordered to pay a $4.3 billion penalty.

Analysts believe that the launch of CZ will lead to further bullishness in crypto. In an X post, CryptoQuant CEO Ki Young Ju predicted that the cryptocurrency will “skyrocket” once it is released. Adrian Zdunczyk, another analyst with more than 600,000 followers on X, predicted that traders will start pumping in cryptocurrencies after the launch.

Zhao’s statement comes at a time when sentiment in the crypto market is rising as Bitcoin enters a technical bull market.

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