Bitcoin climbed to an eight-day high above $72,000 ahead of key U.S. inflation data. The cryptocurrency demonstrated price resilience despite geopolitical tensions surrounding the Middle East conflict. Market participants awaited the release of the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation gauge, which has increased the potential for risk-asset volatility.
Bitcoin’s price pushed past $72,000 for the first time since March 5. This occurred despite global uncertainty stemming from the Middle East conflict and its impact on oil supplies.
Key U.S. macroeconomic data this week largely conformed to market expectations. This decreased the risk of excessive volatility ahead of Friday’s crucial PCE Index release.
The previous PCE print beat anticipated levels. It reached its highest point since late 2023.
Amid the oil crisis threatening inflationary forces, former President Donald Trump renewed demands on the Federal Reserve. “He should be dropping Interest Rates, IMMEDIATELY, not waiting for the next meeting,” he wrote on Truth Social.
Odds of a rate cut at the Fed’s March 18 meeting fell below 1%. This data was reflected in the CME Group FedWatch Tool.
Onchain analytics platform Glassnode noted Bitcoin’s resilience following recent geopolitical shocks. The firm’s analysis suggested “conviction is building” for a bullish breakout but cautioned the foundation remained thin.
Bitcoin has outperformed other major assets since the start of the Iran conflict. It posted a 7.3% gain, while major stock indices declined and precious metals saw sharper drops.
