The Bitcoin price is showing bullish strength as the US Dollar slipped following the dovish Personal Consumption Expenditures (PCE) data. The PCE YoY rose by 2.4% in November, below the expected 2.5%. Similarly, core PCE came out at 2.8%, below the consensus 2.9% figure. The monthly PCE data also indicated that the economists could have been overestimating the threat of sticky inflation, a decidedly bullish scenario for risk assets. BTC is up by 5.5% following the PCE release, while altcoins are also showing bullish strength. Is The Bottom In For Crypto? This week’s crypto price crash has been attributed to US Fed Chair Jerome Powell’s hawkish FOMC speech. While the central bank did cut its interest rates by 25 basis points in line with the market expectations, Powell suggested that the rate cuts could slow down going forward. Indeed, the Fed’s latest Survey of Economic Projections (SEP) revised-up the policy rate and inflation projections. This is a decidedly bearish scenario for risk assets like cryptocurrencies, considering the Bitcoin price shows a strong correlation with the global money supply. As such, experts are projecting a 20%-25% correction in BTC due to the recent tightening in the Global M2 Money Supply. This could result in a larger Bitcoin price crash to $81,000. 📰 Global liquidity (M2) and Bitcoin's price: A synchronized dance🟠 Bitcoin's price has historically mirrored global M2 money supply trends, often with a 70-day lag.🟠 Recent analyses suggest a potential 20–25% BTC price correction due to tightening M2 liquidity.🟠 2025 rate… pic.twitter.com/2WHGgFKv7F — Bitcoinsensus (@Bitcoinsensus) December 10, 2024 However, the latest PCE data suggests that the Federal Reserve could have overestimated the inflationary pressure in the US economy. Chicago Fed President Austan Goolsbee admitted as much in his latest comments. In fact, the Head Macro Economist at Swiss Block Henrik Zeberg reveals that a recession is a much bigger threat to the US economy than inflation. And yet.... Powell was so focused on inflation 🤦♂️ https://t.co/ztKS8nHb9b — Henrik Zeberg (@HenrikZeberg) December 20, 2024 Warren Pies of 3Fourteen Research also believes that the Fed will cut more next year than the latest SEP indicates, which is a decidedly bullish scenario for cryptocurrencies. The Bitcoin price has bounced back nearly 6% from its local bottom and is currently trading at $97,300 at press time. Best Crypto To Buy The Dip? The crypto market’s next leg up could belong to altcoins. Data from LookOnChain suggests that the whales have been buying Ethereum on the latest dips. Arkham Intelligence reveals that Donald Trump’s World Liberty Financial also purchased $2.5 million worth of ETH, bringing its total Ethereum holdings to $50.5 million. DONALD TRUMP IS BUYING THE DIPThe World Liberty Finance Treasury just bought $2.5M ETH with USDC.World Liberty Finance currently holds $50.5M of ETH. pic.twitter.com/RR3Bwz0r0m — Arkham (@arkham) December 20, 2024 Experts believe that XRP is also one of the best crypto to buy now. The token fared better than other large-cap altcoins in this week’s crash and has formed a double-bottom on its price chart. The XRP price is already up by nearly 13% since the double-bottom formation. Smart money investors are also buying low-cap meme coins, projecting that they could deliver outsized returns in the coming “altseason”. For instance, Wall Street Pepe (WEPE) continued to display a stellar performance in its presale despite the broader market crash. The WEPE ICO has now raised nearly $33 million in less than a month. Besides being a frog-themed meme coin, Wall Street Pepe is a high-utility token. Smart money investors are particularly impressed by its upcoming VIP “alpha calls” group which could see strong retail interest in the coming bull market. All WEPE holders will be members of this group and receive cutting-edge market alpha, trading strategies and the best cryptos to invest in. Unsurprisingly, prominent experts are bullish on WEPE’s upside, with many calling it the next 100x meme coin. Visit Wall Street Pepe Presale Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
