Bitcoin held near key support levels as inflation data clarified interest rate expectations.
December personal consumption expenditures matched forecasts at 2.8%, reinforcing a higher-for-longer policy outlook.
Crypto strategist Matt Mena said the data cleared uncertainty that had weighed on markets since late 2025.
“This morning’s December PCE report has provided the definitive anchor the market needed to clear the lingering data fog,”
Matt Mena said.
Core PCE also printed at 2.8% year on year, supporting a soft-landing economic narrative.
Bitcoin retested support near $89,000 as broader crypto market capitalisation stabilised around $3.1tn.
“Bitcoin retested the $89K support level on the news and the wider crypto marketcap settled at the $3.1 trillion support,”
Matt Mena said.
Strong GDP growth and firm inflation reduced expectations for near-term interest rate cuts.
Mena said bitcoin is increasingly behaving as a macro hedge supported by low exchange balances and ETF inflows.
Renewed spot ETF demand has contributed more than $59bn in inflows, reinforcing downside support.