U.S. Core PCE Price Index Rose 2.8% Year-on-Year in October, BTC Price Broke $97,000

On Wednesday, the U.S. core PCE price index for October rose 2.8% year-on-year, which was in line with expectations but still higher than the Fed's 2% target.

The U.S. core PCE price index for October rose 2.8% year-on-year on Wednesday, largely in line with expectations. However, this reading still marks a deviation from the Fed’s 2% target. This data further stoked market concerns about continued high inflation and raised questions about the effectiveness of the Fed’s monetary policy tightening.

This situation has left the Fed facing a tricky policy dilemma, according to Crescat Capital macro strategist Tavi Costa. He warned that the risk of a second wave of inflation appears to be brewing. If this happens, the Fed will face a difficult choice: further interest rate hikes could increase the government's debt burden, while slowing the pace of rate hikes could cause inflation to get out of control.

In response, U.S. stocks fell, while the crypto market rose against the trend.

Faced with inflationary pressure and uncertainty about the Fed's policies, traditional financial markets were cautious. All three major U.S. stock indexes fell. As of the close, the S&P, Dow Jones and Nasdaq fell 0.42%, 0.30% and 0.66% respectively.

However, the crypto market showed strong resilience. Bitcoin prices rose sharply on Wednesday, breaking through the $97,000 mark, and Ethereum rose more than 10%, hitting a multi-month high. Ethereum (ETH) rose 10%, reaching a high of $3,687.01 during the day, the highest since June.

The top 200 tokens by market capitalization all rose. Among them, Kadena (KDA) ranked first with a 25.3% increase, followed by Uniswap (UNI) with a 23.7% increase, and PancakeSwap (CAKE) with a 22% increase.

The current overall market value of cryptocurrencies is $3.34 trillion, and Bitcoin’s market share is 57.1%.

According to Coinglass, the Ethereum ETF recorded positive capital inflows for three consecutive days, with a net inflow of up to $40.6 million on Tuesday. This trend sharply contrasts with the continued net outflow of Bitcoin ETF. QCP Capital analysts noted that the market is shifting funds from Bitcoin to Ethereum and altcoins. This phenomenon is driven not only by investors' expectations for the altcoin season but also by the ecological development of Ethereum itself and the strong performance of the derivatives market.

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