In the recent report, the U.S. Federal Reserve's preferred measure of inflation, PCE, rose to 2.5% in February, aligning with market expectations. This increase comes amidst a backdrop of rising CPI, PPI, and PCE inflation. Concurrently, Bitcoin's value is under scrutiny as investors await Fed Chair Jerome Powell's upcoming speech.

February's PCE inflation in the U.S. slowed to 0.3%, following January's 0.4% uptick. The core PCE index, excluding food and energy, also slowed to 0.3% from the previous month's 0.5% increase. However, annual PCE inflation rose to 2.5%, up from the lowest point since February 2021, while annual core PCE inflation remained steady at 2.8%.

Several major Wall Street institutions anticipated a cooling of inflation in the coming months, with JPMorgan Chase CEO Jamie Dimon suggesting that the Fed should delay interest rate cuts until after June. Despite this, Fed Chair Jerome Powell's outlook includes expectations of three rate cuts in 2024, with a 61% chance of cuts in June according to CME FedWatch.

Following the PCE inflation report, the U.S. dollar index surpassed 104.50, continuing its upward trend since the beginning of the month. Meanwhile, US 10-Year Treasury yields eased to around 4.20%, as investors found some relief in the inflation data, strengthening expectations of future interest rate cuts by the Fed.

In the cryptocurrency market, Bitcoin faced its largest options expiry, settling over $15 billion in BTC and ETH options. BlackRock noted a strong investor focus on Bitcoin, with significant inflows into Bitcoin ETFs. Analyst Markus Thielen remains optimistic, predicting a potential rise above $100K, with a target of $140K after the bitcoin halving.

Despite this, Bitcoin's price remains volatile, currently trading at $70,038, with a 24-hour low and high of $69,605 and $71,546 respectively. Additionally, trading volume has decreased by 31% in the last 24 hours, indicating reduced interest among traders amidst high volatility.

In conclusion, while inflation concerns persist in traditional markets, Bitcoin's trajectory remains uncertain despite bullish predictions and high trading activity.