Fed’s Favorite Inflation Gauge Just Hit Its Highest Level Since 2023: What It Means for Bitcoin

April’s Personal Consumption Expenditures (PCE) inflation matched forecasts at 3.8% YoY — the highest since May 2023 — while core PCE rose 3.3% YoY (0.2% m/m). The stickier inflation print pushed Fed rate-cut odds lower and reinforced a higher-for-longer policy backdrop; CME FedWatch shows a 98.9% probability the Fed holds rates at 3.50–3.75% on June 17. Markets reacted with a firmer dollar and rising Treasury yields, weighing on non-yielding assets: Bitcoin (BTC) slid about 2.9% toward $73.3k (market cap ≈ $1.47T). Traders will now watch upcoming payrolls and CPI releases for confirmation of inflation momentum and implications for rate-cut timing.