The U.S. Personal Consumption Expenditures (PCE) Price Index, a key inflation gauge, was released on Dec. 5, tracking the average prices Americans pay for goods and services. Analysts predicted the headline PCE to hold around 2.9%, with a figure below triggering bullish reactions. The previous release showed inflation at 2.7% year-on-year. Citi and Goldman Sachs expect the headline PCE to rise slightly above previous rates. A rate cut in December’s FOMC meeting is highly likely. A hotter PCE index could lead to higher interest rates, impacting the U.S. dollar and crypto markets. Major cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP experienced price declines as inflation data was released.

Read more at Yahoo Finance: Bitcoin, XRP drop despite positive inflation data