Prices for Bitcoin (BTC), Shiba Inu (SHIB), Dogecoin (DOGE), and Cardano (ADA) fell immediately following the announcement of the U.S. Core Personal Consumption Expenditures (PCE) data on March 28, 2025. The overall cryptocurrency market capitalization fell 4.6%, to $2.95 trillion, as prices responded to rising inflation fears.
U.S. PCE Data Indicates Continuing Inflation
The underlying PCE measure, in a February report from the Bureau of Economic Analysis, rose from 2.7% in January to 2.8% in February. It was a record rise beyond the median forecast and again reflected a problem with inflation. The core PCE month-to-month gain rose from 0.3% to 0.4%, again causing investors concern.
Analysts note the PCE to be a significant inflation measure taking into account urban and rural data. Economists also expect inflation measures like the Consumer Price Index (CPI) and PCE to increase due to past tariff increases by former President Donald Trump, including increasing tariffs on steel and aluminium to 25% and adding another tariff on foreign cars imported.
Impact on BTC, SHIB, DOGE, and ADA
The impact of rising inflation does not stop there with consumer goods. Cryptocurrencies such as Bitcoin, Shiba Inu, Dogecoin, and Cardano are not exempted. The Bitcoin price fell below $85,000, and trending popular tokens such as SHIB, DOGE, and ADA fell over 3%.
Increased inflation would lead to tighter Federal Reserve policy, which would drive interest rates higher in the long term, perhaps continuing to drive cryptocurrency prices downward. That could keep pressure on crypto prices, as investors shy away from high-risk assets in a tightening monetary environment.
Whale Activity in the Market
Despite the broader sell-off, whale activity painted a more strategic picture. It has been studied that large-cap investors are purchasing assets, particularly Solana (SOL) and Ripple (XRP), and this may be an indication of a bull trend. This positivity in the decline of Bitcoin, SHIB, DOGE, and ADA may be an indication of evolving investing strategy with reducing prices.
Market whales are diversifying into other altcoins as a likely hedge against the present challenges confronting Bitcoin and altcoins, Invezz reports.
Future Market Projections
In the near future, experts believe inflation pressure will be able to worsen the slowdown in consumer spending even further, and perhaps trigger a recession. A recession would result in the lowering of interest rates by the Federal Reserve and tempting economic stimulus activity, historically spiking prices of cryptocurrency as a risk asset. How these changes impact prices within the next several weeks remains unclear.
As the Federal Reserve continues to battle such economic winds, the crypto market will be on its toes in search of inflationary pressure and whale trades, and as such, it is of paramount importance that investors keep developments in close hand.
