# Fed's inflation optimism gets crushed by reality — short Bitcoin and stick to the facts

_AI-generated trading idea · SHORT · BTC, COIN_

> Canonical page: https://commonquant.ai/research/for-you/fed-s-inflation-optimism-gets-crushed-by-reality-short-bitco--f51231ba-2fad-4274-ace3-ff7c5f4c6a93

A Fed official tried to say there is hope for inflation cooling down, but the actual inflation numbers just hit a three-year high. Bitcoin completely collapsed on this news, proving the market doesn't believe the Fed's optimism.

## Idea

Fed official Austan Goolsbee just tried to calm markets by claiming there is a 'glimmer of hope' in the latest inflation data. However, reality disagrees: US PCE inflation just hit a three-year high. The market immediately saw through the Fed's optimism, leading to a $1.3 trillion crypto rout and pushing Bitcoin to a 21-month low. When the central bank tries to talk the market down while hard economic data is actually surging, it creates a massive loss of confidence. The derivatives market is even signaling more pain ahead for crypto, making this a prime environment to bet against Bitcoin.

## Key details

- Symbols: BTC, COIN
- Timeframes: D1
- Tags: \#macro, \#inflation, \#crypto

## Community

- Upvotes: 0
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Fed's Goolsbee sees glimmer of hope in latest inflation data - Reuters](https://news.google.com/rss/articles/CBMiqwFBVV95cUxPdEFGQUZUX0k1RUJGXzVDc2M3c3BQQkNiY29MM0FSZVRQaUx1dklZSm1aTUltZFNnY0trZlNyLWZqUVNPZXd2dTZSTEY3T09GUTBGMHdOZHBWNmhMWHI3Y3pLOEJTZC0xRWdnMlIxWlA4NEhXMzAyQkRGVlIzOW1wQXM4RnBmNEFjQzNVZTVXLW9xcV9xNWpVc1BBTUNBVTlRQXZFNzFURWw4MkE?oc=5) — Reuters
- [Bitcoin Bottom Hunters Fear Fresh Pain After $1.3 Trillion Rout](https://www.bloomberg.com/news/articles/2026-06-26/bitcoin-bottom-hunters-fear-fresh-pain-after-1-3-trillion-rout) — Bloomberg
- [Bitcoin drops to $58K on high US PCE inflation as trader sees 'manipulation'](https://cointelegraph.com/markets/bitcoin-drops-to-58-on-pce-highs) — Cointelegraph

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