• The U.S. Bureau of Economic Analysis reported that the Personal Consumption Expenditure (PCE) Price Index increased by 0.6% in January, up 4.7% compared to a year ago, potentially impacting the crypto market.
• The Fed reportedly prefers the PCE over the Consumer Price Index (CPI) to gauge inflation, as it tracks how price changes influence spending behavior and accounts for price changes in rural or remote settings better than CPI does.
• U.S. equities markets closed in the red on Friday and Bitcoin dropped below $24K as bearish sentiment swept across both markets; if the Fed takes a hawkish stance due to high inflation rate in March, recent uptrend momentum could be slowed and gains seen in past two months corrected.

Overview

This article discusses the potential impact of an increase in inflation on the crypto market due to a rise in Personal Consumption Expenditure (PCE) Price Index reported by U.S.’s Bureau of Economic Analysis (BEA). It also looks at how Federal Reserve’s preference for PCE over Consumer Price Index (CPI) affects this scenario, followed by analysis of U.S equity and crypto markets performance after release of PCE data and what March holds for crypto investors with respect to this news update.

The Rise In Inflation

According to BEA, PCE Price Index rose by 0.6%, up 4.7% from a year ago which could push the Federal Reserve into considering further hikes on rates – confirming higher-for-longer rate narrative that spread market uncertainty recently.

Why Is PCE A Big Trigger For Crypto?

Federal Reserve reportedly prefers PCE over CPI as it has broader scope and ability to gauge economy’s strength better than CPI does; additionally it tracks how price changes influence spending behavior and also accounts for price variations across households or remote settings unlike CPI which doesn’t factor these differences into consideration while gauging inflation levels

U S Equities & Crypto Market Performance

US equities markets closed down 1st day post-release of PCE data while cryptocurrency market saw BTC drop below $24K with overall crypto market cap falling 3%.

What Does March Hold For Crypto?

If Federal Reserve takes hawkish stance due to high inflation rate recorded in January during its next meeting scheduled for March, recent uptrend momentum could be slowed down with most gains seen in past two months wiped off; breaking below $23K psychological level would confirm this scenario according to experts

• Aptos [APT] was showing a bullish market structure across its higher and lower timeframe charts.
• Bulls could potentially target the supply zone at $20 if they clear key obstacles such as $16.1736, $16.7694, and $17.7537.
• Investors should note that a drop in Open Interest (OI) could signal a drop in demand and bearish sentiment, which could derail bulls’ efforts to reach the $20 supply zone.

Aptos [APT] Market Overview

APT was strongly bullish across higher and lower timeframe charts by press time, giving investors the potential to target the supply zone at $20 if they can clear certain key obstacles.

Key Obstacles To Reach The Supply Zone

The market faced several price rejections in the $20 zone between mid-January and early February with bearish order blocks setting APT into a correction of over 25%. As a result, the bulls must now clear obstacles at $16.1736, $16.7694, and $17.7537 in order to reach the said supply zone at around the same level again.

Bullish Weekly Chart Structure

Investors should be aware that APT’s market structure is still bullish on weekly, daily, and lower timeframe charts at press time with a bullish flag formed on its weekly chart indicating potential gains up to about 25% should it break past these sell pressure zones mentioned above.

Possible Downtrend & Shorting Opportunities

However, any downswing resulting from failing to clear these sell pressure zones or breaking below its demand zone of around$12 will lead to further losses with bearish targets set around 8 dollars per APT token ($8). This could offer shorting opportunities at around 9 dollars per token ($9).

Open Interest Rate Impact On Price Movement

APT’s open interest rate (OI) has been increasing since 13th February when it retested its demand zone as support which gave bulls more confidence to launch recovery attempts towards their target of 20 dollars per token ($20). A drop in OI however signals a decrease in demand which could negatively affect the price movement so investors need to keep an eye out for this indicator too before making any decisions regarding their investments in APT tokens

• Ordinal NFTs have recently been launched on the Bitcoin network, generating mixed reactions in the crypto community.
• Bitcoin’s mean transaction size is currently at a 4-year high.
• Meanwhile, the derivatives market shows that open interest and demand for leverage is gradually growing.

Ordinal NFTs On The Bitcoin Network

The Ordinal NFTs have received mixed reactions in the crypto community. Some feel that this exploration of the Bitcoin network is a step in the right direction that may offer more opportunities in the future. Others claim that the move goes beyond what Bitcoin stands for. Nevertheless, the floor price for those NFTs has been rising with an all-time high sale of 9.5 BTC ($215K) today.

Impact Of NFTs On The Network

The potential impact of having NFTs on the network is perhaps the biggest concern. Will it slow down the network or make it more congested? The Ethereum network has experienced such challenges in the past which have impacted significantly on ETH’s price. In most cases, network congestion is translated as high demand and this could be beneficial to Bitcoin’s native cryptocurrency if similar conditions arise here too.

Bitcoin’s Mean Transaction Size

Bitcoin’s mean transaction size is currently at a 4-year high, indicating higher levels of activity on its blockchain network than ever before. This could lead to potential benefits such as faster transactions and better scalability options if these trends continue going forward.

Derivatives Market Indicators

The derivatives market also offers insights into BTC’s current position and growth prospects over time. Open interest appears to be trending upwards while funding rates have dropped due to lower volatility levels in recent weeks – both signs that there still exists some level of demand for BTC among traders and investors alike despite these current market conditions..

Liquidations Remain Low

Liquidations remain relatively low at press time despite these seemingly positive indicators coming out from both markets; a sign that traders are still cautious about entering positions even when presented with attractive opportunities to do so – further evidence of a lack of conviction within this space overall