As the Personal Consumption Expenditures (PCE) price index, a key U.S. inflation gauge, once again recorded a high level, the cryptocurrency market is also on high alert for future changes in the Federal Reserve's (Fed) monetary policy.

According to the U.S. Bureau of Economic Analysis (BEA) announcement on June 25, Korea time, the May PCE price index rose 4.1% year-on-year. In particular, the 'core PCE,' which excludes volatile food and energy prices, was tallied at a 3.4% increase. This is a higher level than the previously announced April PCE increase of 3.8%.

The PCE is one of the most important price indicators referenced by the Federal Reserve when determining monetary policy. The market is not ruling out the possibility that the timing of the Fed's benchmark interest rate cut could be delayed if this inflationary trend continues.

Such hawkish interest rate forecasts are expected to have a direct impact on the cryptocurrency market, including Bitcoin and Ripple (XRP). Generally, when expectations for interest rate cuts weaken, investor sentiment toward risk assets tends to shrink. Conversely, if inflation stabilizes and expectations for expanded market liquidity rise, it could have a positive effect on the cryptocurrency market.

Going forward, investors are expected to gauge the direction of the Fed's policy through upcoming U.S. employment data and additional inflation indicators.

[This is an article written with AI assistance. This article does not constitute investment advice, and any losses resulting from cryptocurrency investments may be borne by the investor.]