BlockBeats News, January 22 — The U.S. Bureau of Economic Analysis (BEA) is set to release the latest Personal Consumption Expenditures Price Index (PCE). The market generally expects that core inflation momentum remains insufficient to decline. Consensus forecasts indicate that the core PCE year-over-year growth rate will stay around 2.8%–2.9%, with the overall PCE approximately 2.7% YoY, showing that inflation remains significantly above the Federal Reserve’s 2% long-term target and exhibits a clear “high-level sideways” characteristic.
From a macro perspective, U.S. inflation is in a tug-of-war between bulls and bears. On one hand, tariff-related costs and some commodity prices provide a bottom support for inflation; on the other hand, slowing wage growth and rental price increases are gradually suppressing service sector inflation. This means inflation has not worsened further but also cannot cool down quickly, further constraining monetary policy space. Coupled with the data lag caused by the previous government shutdown, this PCE is more likely to be viewed as a “trend confirmation” reference rather than a key variable to change policy direction. The market consensus has basically formed: the probability that the Federal Reserve will keep interest rates unchanged next week is close to 95%. In the short term, the high-interest-rate environment will continue to constrain risk asset valuations; in the medium term, if inflation remains sticky and the economy does not show significant recession, policy will enter a longer observation period.
Bitunix Analyst: In the crypto market, the “high-level stay” of interest rates means liquidity is unlikely to improve significantly in the short term, and the correlation between Bitcoin and risk assets will persist. However, if inflation cannot effectively decline in the long term and real interest rates gradually peak, cryptocurrencies, as a narrative for hedging monetary policy uncertainty, still have the conditions to reignite. This PCE seems more like a “status quo continuation” confirmation rather than a turning signal; what can truly change the market rhythm is whether the inflation trend can substantially break the current deadlock.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin has never ended the year higher after a poor start — will 2026 break the trend?
The seasonality of Bitcoin is one of the persistent "market narratives," largely because the average numbers are very easy to capture and spread. But the problem is: averages often obscure the most important thing — the state of the market.
A strong "Uptober" in a healthy upward trend
TapChiBitcoin5m ago
Miners collectively transform into AI: Mining costs have inverted by nearly $20,000, selling Bitcoin to raise $7 billion for a shift in computing power.
Bitcoin mining is undergoing a structural transformation, with average mining costs for mining companies expected to reach $80,000 by the end of 2025, while the price of Bitcoin is only around $70,000. Mining companies are increasingly turning to artificial intelligence and high-performance computing, with total related contracts exceeding $70 billion. The funding for this transformation mainly comes from leveraged financing and the sale of Bitcoin reserves. Although there is a significant divergence in the valuations of mining companies, whether the price of Bitcoin can rebound to $100,000 will impact the future development of the mining industry.
BlockBeatNews16m ago
The loss from mining a single Bitcoin is approximately $19,000, and mining companies are accelerating their transition to AI and high-performance computing businesses.
Gate News reports that on March 28, the current mining of a single Bitcoin faces a loss pressure of about $19,000. Mining companies are accelerating their transformation towards artificial intelligence (AI) and high-performance computing (HPC), and are funding related infrastructure investments by selling part of their BTC reserves. According to CoinShares data, publicly listed mining companies have announced a total value of over $70 billion in AI and HPC collaboration projects, indicating that the industry as a whole is transitioning towards computing power services.
GateNews1h ago
BTC ETF has regained $3.0 billion in outflows since the “1011 crash,” and by year-to-date the liquidity position is approaching flat
Gate News reports that on March 28, according to Bloomberg ETF analyst James Seyffart, between October 2025 and the end of February 2026, Bitcoin ETFs recorded about $9 billion in outflows, of which approximately $3 billion has been recovered. Although the overall net outflow since the "1011 crash" still exceeds $6 billion, looking at the performance this year, the inflows and outflows of Bitcoin ETFs have nearly balanced out, indicating a certain recovery in market sentiment.
GateNews1h ago
