September 2023

25-Basis Point Rate Hike Anticipated: Fed’s PCE Inflation Surges

• US Treasury General Account dwindles to critical levels with less than $50B remaining
• Market anticipates 25-basis point rate hike in June
• Bitcoin, altcoins stand tall despite options expiry pressure

US Treasury General Account Dwindles

The US Treasury General Account is dwindling rapidly, now holding less than $50 billion. This has caused a stir in the market, with investors expecting a 25-basis point rate hike in June. Despite this pressure, Bitcoin and altcoins have remained steady. The second largest withdrawal from exchanges this year was also observed, hinting at Bitcoin’s potential return to a bull market.

PCE Inflation Surges Beyond Expectations

Today’s Personal Consumption Expenditure (PCE) Price Index numbers are expected to surpass the anticipated 3.9%, reaching 4.4%. This alarming PCE inflation for both April and May have led markets to forecast a further 25-basis point rate hike, raising the federal funds rate to 5.25-5.50%.

Bitcoin and Altcoins Remain Steady

Despite the looming economic uncertainty caused by these events, Bitcoin and altcoins have managed to remain steady against all odds. The second largest withdrawal of Bitcoin from exchanges has been observed this year, suggesting that long-term holders may be bullish on the crypto asset once again. This could potentially lead to a return of Bitcoin into the bull market.

Options Expiry Pressure

The options expiry pressure on cryptocurrencies hasn’t had any major effect as yet; however it remains unclear how things will play out in the coming weeks if tensions continue to mount up between governments and central banks over their respective monetary policies.


To conclude, while there is still some level of uncertainty surrounding cryptocurrencies as well as global macroeconomic conditions due to rising inflationary pressures, it appears that both Bitcoin and altcoins are still managing to remain relatively stable despite this volatility. The recent withdrawals from exchanges could be an indication that long-term holders are becoming more confident about its future prospects; if true then we might see a return of positive sentiment towards cryptocurrencies soon enough!