Bitcoin, XRP drop despite positive inflation data

Core Insights - The U.S. Personal Consumption Expenditures (PCE) Price Index is a key inflation measure closely monitored by financial markets, reflecting changes in the cost of living and consumer behavior [1] - Analysts have varying predictions for the PCE, with expectations of a bullish market reaction if inflation cools below 2.9% [2] - Citi and Goldman Sachs project the headline PCE to rise by 0.29% month-over-month and 2.8% year-over-year, indicating steady inflation [3][4] Inflation Data Release - The U.S. Bureau of Economic Analysis released the September PCE inflation data on December 5, showing a headline PCE of 2.8%, aligning with expectations, while core PCE fell to 2.8%, below the anticipated 2.9% [5] - The release was delayed due to a government shutdown, highlighting the impact of external factors on economic data dissemination [5] Market Implications - The current PCE data suggests a cooling inflation trend, which may influence Federal Reserve policy, with an 87.2% chance of a rate cut in the upcoming December FOMC meeting [5]