Bitcoin Slides to $111K Ahead of PCE Inflation Data, Faces Monthly Decline
Bitcoin nears $111,000 amid rate cut talk, set for 4% August drop.
Traders eye PCE inflation data; 85% chance of Fed rate cut in September.
Trump’s Fed clash unsettles markets; altcoins mixed; American Bitcoin eyes 2025 Nasdaq debut.
Bitcoin Dips Ahead of U.S. Inflation Data, Fed Rate Decisions
Bitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S. inflation figures and considered growing odds of a Federal Reserve interest rate reduction next month. At 01:57ET(05:57GMT), the leading cryptocurrency was down 1.5% to $111,229.6.
Earlier this week, Bitcoin dropped to a seven-week low below $109,000 but has made a slight recovery since.Despite this rebound, Bitcoin remains over $10124,000 and is heading for its first month of losses since April, with an anticipated 4% decline in August following four straight months of gains.
Market Focus on Fed’s Inflation Gauge and Rate Cut Prospects
Traders are closely monitoring the U.S. personal consumption expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation, due Friday. A softer-than-expected reading could strengthen arguments for easing monetary policy, while a firmer figure might reduce expectations for rate cuts.
Currently, markets assign an 85% probability to the Fed reducing rates by 25 basis points in September, with additional cuts likely before the year's end. Typically, optimism around rate reductions supports high-risk assets like cryptocurrencies; however, recent political tensions around the Fed have dampened sentiment.
Political Uncertainty and Altcoin Market Movements
Investor confidence has been shaken by a rare political confrontation involving President Donald Trump’s attempt to remove Fed Governor Lisa Cook, who refused to step down and has filed a lawsuit to protect the Fed’s independence. This rare dispute has unsettled markets concerned about political interference in monetary policy.
Meanwhile, American Bitcoin, a mining company financially supported by Trump’s sons Eric and Donald Jr., plans to debut on Nasdaq in early September 2025 through a reverse merger with Gryphon Digital Mining. Trump’s sons and major investor Hut 8 collectively hold about 98% ownership.
Within altcoins,
Ethereum declined 2% to $4,479.91.
XRP fell 2.9% to $2.91.
Whereas Solana surged nearly 2% to a record $217.9.
Cardano dropped 2.9%.
$TRUMP showed little movement.
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