US May Core PCE Index Released: Key Crypto Market Reactions

The release significantly influences expectations for Federal Reserve rate actions, affecting cryptocurrencies and DeFi markets.

The US Bureau of Economic Analysis is set to release the highly anticipated US May Core PCE Price Index on June 27, 2025. This index, excluding food and energy, is a preferred inflation measure by the Federal Reserve.

Key figures like Federal Reserve Chair Jerome Powell reference the Core PCE in reports. The index’s release often influences monetary policy decisions by the Federal Open Market Committee. Actions taken are closely monitored by financial markets.

Cryptocurrencies, including Bitcoin and Ethereum, tend to experience volatility when the Core PCE Index is released. This index influences dollar strength and market sentiment, impacting risk asset investments and decentralized finance activities.

The PCE Index affects institutional investor positioning, especially regarding expectations of Fed rate changes. This impacts bond yields and broader market risk sentiment, directly affecting cryptocurrency market dynamics and liquidity.

Historically, unexpected PCE data has led to pronounced market reactions. Higher-than-expected inflation figures strengthen the US dollar, generally causing a downturn in cryptocurrency values, primarily Bitcoin and Ethereum.

The June 27 release follows a 2.5% YoY PCE increase in April. Analysts predict a potential continuation of dovish Federal Reserve commentary if the index indicates slowed inflation. Cryptocurrency markets closely watch this data for investment cues.

The Core PCE index remains our preferred gauge of inflation as it closely reflects consumer behavior, and adjustments in this figure will inform our rate strategy. — Jerome Powell, Chair, Federal Reserve