Bitcoin (BTC) is currently facing volatility following the release of higher-than-expected US inflation data. On March 28, BTC attempted to find a local bottom at around $85,500 before reversing and seeing a decrease of over 3% for the day, dropping below $84,500 on Bitstamp, marking its lowest point since March 23. The latest data from the US Personal Consumption Expenditures (PCE) Index indicates that inflation is on the rise, contrasting the lower results from the previous month. Although the month-on-month and year-on-year PCE figures met market expectations at 0.3% and 2.5% respectively, the core PCE was 0.1% higher than predictions. Analysts from The Kobeissi Letter expressed concern about the possibility of stagflation in 2025, suggesting that upcoming March inflation data could provide further insight. Despite the inflation warning, Bitcoin's price movements revealed readiness among market participants for potential surprises. Traders like Daan Crypto Trades anticipated a volatile day due to the PCE data release. While some analysts believe that Bitcoin's upward trend remains intact, they express caution about the market's strength. Michaël van de Poppe noted that a drop below $84K could trigger tests around $78-80K. Another trader, TheKingfisher, projected a typical market cooldown, suggesting a potential reset as we approach May—a time historically associated with selling pressure. The overall sentiment reflects uncertainty, with traders keeping a close watch on both Bitcoin's immediate price action and broader market trends. Investment decisions should be made with careful consideration and personal research, as all trading carries inherent risks.

**Bitcoin Faces Volatility Amid Higher-than-Expected US Inflation Data** Bitcoin (BTC) has encountered significant volatility following the release of US inflation data that surpassed expectations. On March 28, BTC made an attempt to establish a local bottom at approximately $85,500 before reversing direction, ultimately declining more than 3% for the day. The cryptocurrency briefly dipped below $84,500 on Bitstamp, marking its lowest value since March 23. The recent figures from the US Personal Consumption Expenditures (PCE) Index indicate an uptick in inflation, presenting a stark contrast to the lower results observed in previous months. While the month-on-month and year-on-year PCE metrics aligned with market forecasts at 0.3% and 2.5%, the core PCE fell 0.1% higher than anticipated. Analysts from The Kobeissi Letter have raised alarms about a potential stagflation scenario in 2025, indicating that forthcoming inflation data for March may shed further light on this situation. Despite the inflation concerns, Bitcoin's price behavior suggests that market participants are prepared for potential fluctuations. Notably, trader Daan Crypto Trades predicted a volatile trading day in response to the PCE data release. While some market analysts maintain that Bitcoin's overall upward trend is still valid, there is cautious sentiment regarding the market's resilience. Michaël van de Poppe warned that a decline beneath the $84K mark could see the price testing levels around $78-80K. Likewise, another trader known as TheKingfisher acknowledged the inherent volatility but suggested that the market's current conditions reflect a typical cooldown, potentially leading into a seasonal reset as May approaches—a month historically known for selling activity. Overall, the market sentiment reflects a blend of uncertainty and vigilance, with traders closely monitoring Bitcoin's immediate price action alongside overarching market trends. Given the inherent risks associated with trading, careful analysis and personal research are essential for making informed investment decisions.