Investors in both traditional and cryptocurrency markets are closely watching Friday’s release of the Personal Consumption Expenditures (PCE) report in the United States. This data could ease inflation concerns and potentially fuel a surge in demand for risk assets like Bitcoin.
Set for publication on March 28, the PCE index—issued by the US Bureau of Economic Analysis (BEA)—tracks the price inflation of consumer goods and services in the country.
PCE Data: A Potential Bitcoin Catalyst
According to QCP Group, a Singapore-based digital asset firm, the upcoming PCE inflation figures could act as the “next major catalyst” for Bitcoin and other volatile assets.
QCP shared on Telegram:
“As we approach Friday’s quarterly expiration, with substantial open interest in options targeting prices above $100,000, we anticipate limited volatility stemming from options positioning alone. However, the focus will shift to the PCE inflation print, which may emerge as a key market driver.”
The firm also noted that risk assets rebounded significantly earlier this week, partly due to comments from former US President Donald Trump, who indicated the possibility of exemptions or reductions in trading tariffs, helping to ease market anxieties.
Tariff Uncertainty Weighs on Market Sentiment
Some analysts, however, argue that ongoing concerns over global trade policies remain a primary obstacle for investor confidence.
Despite recent positive developments within the crypto industry, uncertainty around international tariffs could continue to influence market movements at least until April 2, according to Nicolai Sondergaard, a research analyst at Nansen.
“I’m eager to see the developments regarding tariffs from April 2nd onward. There’s potential for some reductions, but much depends on whether agreements can be reached among all parties involved,” Sondergaard commented.
Since January 20—when former President Trump initially announced tariffs on Chinese imports—Bitcoin’s value has dropped more than 14%.
Still, analysts anticipate that the PCE report will help ease inflation concerns, potentially triggering Bitcoin’s historical tendency for strong April performance.
Bitcoin’s April Track Record & Potential $110K Rally
April has historically been one of Bitcoin’s strongest months, with an average return of 12.9%, making it the fourth-best performing month for the asset, according to CoinGlass data.
Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, believes Bitcoin is more likely to hit a new all-time high of $110,000 before experiencing a pullback to $76,500.
Juan Pellicer, a senior research analyst at IntoTheBlock, also supports the idea that Bitcoin could reach record levels under current market conditions.
“BTC is showing signs of recovery, bolstered by rising institutional demand and significant capital inflows from major investors,” Pellicer explained. He further noted:
“The Federal Reserve’s recent move to ease its monetary tightening could enhance market liquidity, creating favorable conditions for Bitcoin’s price to rise.”
Pellicer acknowledged that market volatility remains a key risk, potentially causing short-term corrections. However, the overall momentum and underlying support levels suggest that Bitcoin is more likely to reach its higher price target before any major retracement occurs.
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