Crypto Prices Plummet: Is It the End or Just a Dramatic Pause? 😱

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So, the crypto market was feeling a little queasy on Friday, and no, it wasn’t from that questionable sushi you had for lunch. The U.S. decided to drop its favorite inflation bomb, the Federal Reserve’s preferred inflation metric, and let’s just say, the results were not what the crypto world ordered. 🍣💸

Bitcoin (BTC) took a nosedive below $85,000, while the beloved tokens Shiba Inu (SHIB), Dogecoin (DOGE), and Cardano (ADA) decided to join the pity party, all slipping over 3%. The total market cap of all cryptocurrencies, as tracked by CMC, dropped by 2.6% to a mere $2.76 trillion. I mean, who needs that kind of money anyway? 🙄

According to the Bureau of Economic Analysis (which sounds like a fancy name for a group of people who really love spreadsheets), the core personal consumption expenditures (PCE) index rose from 2.7% in January to 2.8% in February. That’s right, folks! Inflation is like that one friend who just won’t leave the party. On a monthly basis, the core PCE rose from 0.3% to 0.4%. Can we get a collective eye roll? 🙄

The headline PCE stayed at 2.5% year-over-year and 0.3% month-over-month, which is basically the economic equivalent of “I’m fine” when you’re clearly not. It’s still above the Fed’s long-term target of 2.0%, so we’re all just sitting here, waiting for the other shoe to drop. 👠

Fed Actions: The Ultimate Buzzkill for BTC, SHIB, DOGE, ADA, and All Your Favorite Altcoins

The PCE is like that friend who always knows what’s going on because it includes data from both urban and rural areas. It’s the all-seeing eye of inflation metrics. 👀

Analysts are predicting that both CPI and PCE will trend higher, thanks to Donald Trump’s tariff policies. He’s already raised steel and aluminum tariffs by 25%, and this week he decided to throw in a 25% tariff on all imported vehicles. Because why not? Let’s just make everything more expensive! 🚗💸

While Trump claims he’s fighting inflation, he’s also acknowledged that his tariffs might have inflationary effects. According to the Wall Street Journal, he’s been privately telling automakers not to raise prices, but they’re like, “Sorry, buddy, our operational costs just went through the roof!”

Rising inflation could be the kryptonite for Bitcoin and its altcoin buddies like SHIB, DOGE, and ADA. Higher inflation might force the Fed to keep interest rates higher for longer, which is like telling your friend to stop eating the last slice of pizza—nobody wants to hear it! 🍕

“There will be lots of interest in this morning’s US economic data. This is particularly true for the extent of the rise in February’s PCE core inflation, the Fed’s favorite measure.”
— Mohamed A. El-Erian (@elerianm) March 28, 2025

Now, let’s talk about the other big economic risk: a recession. Mark Zandi predicts it, and if he’s right, we’re looking at higher unemployment rates and economic misery in the U.S. Yay! Just what we needed! 🎉

But wait! A recession could actually help ease inflation, as consumer spending takes a nosedive. That might push the Federal Reserve to cut rates and reintroduce quantitative easing. And who knows? The U.S. government might even roll out a stimulus package to boost the economy. Because nothing says “we care” like throwing money at a problem! 💰

Such monetary and fiscal responses would likely be a party for Bitcoin and altcoins, as lower interest rates and fresh liquidity tend to benefit risk assets. So, grab your party hats, folks! 🎉

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2025-03-28 16:30