Traders Target $120K as Bitcoin Awaits Key U.S. PCE Inflation Report

Bitcoin steadied near early Friday as markets looked ahead to today’s release at 8:30 a.m. ET, later today.

The stage is set not for speculation of a first rate cut, but for confirmation of one the Fed already executed. The Federal Reserve trimmed the benchmark rate by on September 17, moving its target range to 4.00%-4.25%

Weak labor data has added urgency. rose by only 73,000, well below consensus. Earlier months’ numbers were revised downward, raising concerns about deceleration in hiring.

In , Powell flagged that risks to employment have become more symmetric, acknowledging that inflation and labor dynamics must both guide the Fed’s next steps.

For Bitcoin, therefore, today’s PCE reading could have a big impact, as a lower figure may boost expectations of easier policy, possibly fueling a rally. At the same time, a stronger print could reduce sentiment and weigh on prices.

Ahead of the release, Bitcoin fell 2.16% over the past 24 hours to $109,542, according to CoinMarketCap. The asset touched $111,850 before reversing in late trading, with the decline pushing its market capitalization to $2.18 trillion.

A spike in trading volume accompanied the pullback, with turnover rising nearly 43% to $73.74 billion, suggesting investors are actively repositioning around key support levels.

Chart data shows the leading cryptocurrency settling around $109,000. However, analysts point to that level as near-term support, with a recovery toward $111,000 required to re-establish bullish momentum.

Prediction markets reflect cautious sentiment. On , 67% of traders expect a move toward $105,000 before any rebound, with fewer placing immediate odds on $125,000.

Jake Kennis (Nansen) noted that while the rate cut is done, today’s PCE print remains critical as it could influence the pace or scale of future easing. A benign number would reinforce confidence in further cuts; a hot print could sow doubt.