Bitcoin Takes a Breath Ahead of US PCE Release

Investor caution grows ahead of PCE announcement
BTC, Maintaining 84 Million Won… Altcoins, Rising
Experts: "BTC, Beware of High Volatility"

Bitcoin (BTC) is taking a breather from its recent rally ahead of the release of the U.S. Personal Consumption Expenditures (PCE) data.

The U.S. Department of Labor is set to release the PCE on the 27th (local time). The PCE, along with the U.S. Consumer Price Index (CPI), is an economic indicator that the U.S. Federal Reserve (Fed) uses as a reference when setting its monetary policy stance.

As economic indicators that will have a major impact on the Federal Reserve's next interest rate decision are about to be released and cryptocurrencies including Bitcoin have recently risen significantly, investors are cautious, and the cryptocurrency market itself appears to have temporarily paused from its recent rise.

Even as the market was stagnant, several altcoins recorded gains of around 7%, injecting optimism into the market itself.

◇Bitcoin = As of 4 PM on the 26th, the Bitcoin price on Upbit was 84.77 million won. Bitcoin’s market share (dominance) was 57.56%.

As Bitcoin stopped rising at $64,000, anxiety surrounding Bitcoin increased significantly.

On-chain analytics platform CryptoQuant reported that as of the 26th, the net Bitcoin deposits and withdrawals at exchanges were higher than the average over the past seven days.

In general, the net deposit/withdrawal amount is the amount of coins deposited into the exchange minus the amount withdrawn. In the case of spot exchanges, the larger the value, the greater the selling pressure on the coin. In the case of futures exchanges, it is interpreted as an increase in volatility risk.

◇Rising Coin = As of 4 PM on the 26th on Upbit, the cryptocurrency that recorded the largest increase compared to the previous trading day was Hive (HIVE), showing a rise of approximately 7%.

With the decline in Bitcoin due to the decline in the asset market, most altcoins, except for a few coins, showed a weak performance.

Hive is a blockchain network that was newly created in March 2020 through a hard fork centered on the Steem community in response to the Tron Foundation's acquisition of 80% of the Steem token (STEEM) supply through a merger and acquisition. The community advocates a blockchain that is fully decentralized, fast, highly scalable, and has low barriers to entry, and its main project is a social blockchain based on graphene, which is promoted as an efficient operating platform for 'DApps'. It provides various services such as Hive Fund, free transactions through a resource credit premium model, and fast block confirmation in less than 3 seconds.

◇Fear and Greed Index = The cryptocurrency fear and greed index provided by Alternative has entered the 'Neutral' stage at 50 points. The neutral stage is a section where psychological resistance and support from market participants appear, and important decision-making actions occur in future price movements.

Reporter Kwon Seung-won ksw@