The PCE price index, as reported by the U.S. Bureau of Economic Analysis, showed that the rate of inflation in the country increased to 5.4% on an annual basis in January, up from 5.3% in December. For the first time in four months, PCE inflation reached 4.7% as a result.
As a result, inflation is much higher than the Federal Reserve’s target of 2%. According to these findings, the Fed will need to raise interest rates for a longer period of time to suppress inflationary pressures. On a month-to-month basis, core PCE inflation and overall PCE inflation both increased by 0.6%.
There are Bitcoin options contracts worth around $1.8 billion that are about to expire today, which may cause volatility in the short-term price movement of BTC. The number of outstanding crypto derivative contracts that haven’t been resolved, called Open Interest, has reached 300,000.
By purchasing and selling options called “calls” and “puts” at a specified price at a given expiration date, traders are able to prognosticate the price of Bitcoin. Ratios are commonly used to predict short-term price action using the historical performances of these contracts.