HTX DeepThink: The divergence between core PCE and CPI widens, presenting headwinds for the crypto market—but also harboring structural opportunities.

Chloe (@ChloeTalk1), a columnist for HTX DeepThink and researcher at HTX Research, analyzed that the current crypto market is operating within a more complex macroeconomic pricing environment. The divergence between the U.S.’s two core inflation indicators is widening: core PCE has risen to 3.3%, while core CPI stands at 2.8%. On the surface, inflation does not appear to be spiraling upward uncontrollably; however, the PCE measure—preferred by the Federal Reserve—remains notably above the central bank’s 2% policy target, thereby eroding market bets on interest-rate cuts.