Crypto Market Volatility Preceding US PCE Data
The cryptocurrency market experienced turbulence on January 31st, as Bitcoin (BTC) and altcoins showed price volatility in anticipation of the US Personal Consumption Expenditures (PCE) inflation data release. This key economic indicator, scheduled for Friday, is expected to influence the Federal Open Market Committee's (FOMC) next interest rate decision.
Market Uncertainty Ahead of PCE Inflation Data
The December PCE inflation data is closely watched by investors and market participants. Uncertainty surrounding its impact caused the global crypto market cap to stagnate near $3.5 trillion, while the global trading volume dropped 16% intraday to $105.07 billion.
Bitcoin Price Action
Bitcoin traded around $104,331 at press time, down almost 1% from the previous day. Intraday, it briefly touched $106,000 before dipping to $103,962. The price volatility coincides with the upcoming PCE data release. Open interest in Bitcoin futures also declined by almost 2% to $64.91 billion.
Ethereum Price and Whale Accumulation
Ethereum (ETH) showed a slight increase of 0.5%, reaching $3,227. Its 24-hour range was $3,179.45 to $3,282.99. Analyst Ali Martinez noted significant ETH accumulation by whales, with nearly 100,000 ETH purchased during a recent price dip, suggesting potential upward momentum. 
Other Altcoin Performances
XRP fell by nearly 1% to $3.09, Solana (SOL) dropped approximately 2% to $235. Meme coins also reflected the broader market trend, with Dogecoin (DOGE) down 1% at $0.3272 and Shiba Inu (SHIB) down 0.3% at $0.00001855.
Top Crypto Performers and Losers
Top Gainers:
- JasmyCoin (JASMY): +30%
- DeXe (DEXE): +21%
- Arweave (AR): +18%
- Mantra (OM): +15%
Top Losers:
- Official Trump (TRUMP): -9%
- Jupiter (JUP): -8%
- Pudgy Penguins (PENGU): -7%
- Optimism (OP): -6%
Market expert Michaël van de Poppe expressed optimism about potential future price increases, suggesting the possibility of multiple rate cuts by the Fed, a weaker US dollar, and a strong bull run in Bitcoin, Ethereum, altcoins, and commodities.
Disclaimer: This information is for educational purposes only. Conduct thorough research before making investment decisions. Codeum is not responsible for personal financial losses.