The inflation rate in the United States Personal Consumption Expenditures (PCE) index has risen to its highest level in three years, as the US-Iran war continues to push prices higher. Bitcoin’s price fell after the release of this data, as cryptocurrency traders continue to assess the likelihood of the Federal Reserve keeping interest rates steady this year amid inflation concerns.

Inflation in the Personal Consumption Expenditures index hits a three-year high as Bitcoin’s price declines
The latest data from the Bureau of Economic Analysis showed that the March PCE price index rose 3.5% year-over-year and 0.7% month-over-month, in line with expectations. However, the inflation rate in Personal Consumption Expenditures, the Federal Reserve’s preferred measure, reached its highest level since August 2023.

Meanwhile, core inflation for Personal Consumption Expenditures increased 3.2% year-over-year and 0.3% month-over-month, both in line with expectations. The core PCE inflation rate is now at its highest level since November 2023, as the Iran war exerts pressure on oil prices. Bitcoin’s price fell significantly after the data was released, reaching around $76,000.

Bitcoin is currently trading at approximately $76,400, up during the day, according to TradingView data. However, the leading digital currency remains under pressure after US President Donald Trump rejected Iran’s latest offer to reopen the Strait of Hormuz, raising fears that the US-Iran conflict could escalate 📈💯❤️❤️❤️❤️🥰🥰🌟💫