Bitcoin News: Cryptocurrency Declines 3% After PCE Data Release, $84,000 Resistance Level in Focus

Bitcoin Drops 3% After PCE Data Release

Bitcoin, often seen as a macroeconomic barometer, experienced a 3% decline following the release of the U.S. Personal Consumption Expenditures (PCE) data on March 28. The $84,000 mark has emerged as a critical resistance level for the cryptocurrency. The PCE figures, with a monthly inflation rate of 0.3% and an annual increase of 2.5%, served as a reminder of lingering inflation concerns. Despite meeting market expectations, the CORE PCE, a preferred indicator for the Fed, exceeded forecasts, casting a shadow over crypto optimism. This development raises questions about Bitcoin’s ability to maintain its status as a safe haven asset amidst shifting economic indicators.

Brazil’s Lula Administration Sees Bitcoin Reserve as Crucial for Prosperity

A high-ranking official in Brazilian President Luiz Inácio Lula da Silva’s administration declared that a potential strategic Bitcoin (BTC) reserve would be determinant for the country’s prosperity and in the public interest. Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, made the remarks during a congressional ceremony, stating that debating the establishment of a sovereign Bitcoin reserve rigorously is a matter of public interest. Guerra compared Bitcoin to digital gold, emphasizing its technology that allows wealth to be transferred swiftly across the globe.

Bitcoin Drops over 3% on Higher U.S. Inflation Data

Bitcoin dropped over 3% on March 28, hitting $83,971 after the release of hotter-than-expected U.S. inflation data. The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation gauge, showed that while overall PCE figures aligned with expectations, CORE PCE—which excludes food and energy—came in at 2.8%. Analysts warn that a break below $83,400 could push Bitcoin toward $80,000 or lower. Concerns about core inflation may delay Fed rate cuts, impacting BTC and other risk assets.

5-Month Bitcoin Supply Decline Reverses, Whales Resume Accumulation

According to CryptoQuant data, major Bitcoin holders or whales (wallets with over 1,000 BTC) have resumed accumulation. Over the past five months, the whale supply dropped from 5.59 million BTC to 5.30 million BTC, indicating potential profit-taking. However, recent data shows a positive change in the 30-day whale position metric, suggesting whales are accumulating again. The whale supply has started to increase since March 2025, reversing the decline seen earlier.

Bitcoin (BTC) Eyes $78,500, Bearish Pattern Signals Trouble

After a bullish start to March 2025, the overall market witnessed a significant price decline on March 28, 2025. Bitcoin (BTC), the world’s largest digital asset, has lost its support and is poised for a massive price drop. According to expert technical analysis, between late February and early March 2025, BTC witnessed impressive upside momentum while forming a bearish rising price action pattern on the daily timeframe. The BTC price has now broken out of the pattern, partially confirming its bearish outlook and opening the path for further price decline.