The much-anticipated March PCE inflation data has come out in line with expectations, leaving market participants wondering about the Federal Reserve’s next move. This inflation metric is the Fed’s most preferred inflation gauge and suggests that Chair Jerome Powell and the FOMC will likely keep rates unchanged at the May meeting.
US PCE Inflation Data Comes In At 2.3%
U.S. Bureau of Economic Analysis data show that the March U.S. inflation data came in at 2.3% year-over-year (YoY), in line with expectations, and 0% month-over-month.
Meanwhile, the core PCE data came in at 2.6% YoY, the lowest since June 2024. This development is significant as this data is what the Fed uses as its primary inflation gauge and could determine its decision at the May FOMC meeting.
With the PCE inflation data stalling, Powell and the FOMC look unlikely to cut interest rates at the May meeting holding between the 6th and 7th.
The Sui blockchain is under growing scrutiny after backing a controversial proposal from DeFi platform Cetus Protocol to recover $162 million in frozen assets.
This decision follows a May 21 incident in which Cetus lost over $223 million to a hacker. In response, more than a third of Sui validators froze a portion of the stolen assets by refusing to process transactions from two wallets believed to be tied to the attacker.
Sui’s Support for Cetus Plan Raises Questions on Decentralization
At the same time, Cetus is pushing for a protocol upgrade to return the frozen funds. The proposal aims to achieve this without altering historical blockchain records or rolling back transactions.
Meanwhile, the Sui Foundation has agreed to support an on-chain vote but stated it will remain neutral and abstain from participating.
“Earlier today, Cetus called for a community vote on a protocol upgrade to return the frozen funds, without rolling back chain history or reversing transactions. This is an extraordinary request in response to extraordinary need–Cetus’s customer funds are at stake. After consideration, we support their call for an on-chain vote,” Sui stated.
The Foundation also stated that Cetus must use all its available financial resources to compensate affected users until it repays all losses.
Critics warn that freezing smart contracts can be problematic even without reversing the chain. They argue that censoring transactions may also undermine the principle of blockchain immutability.
Sui’s Bounty Offer Draws Outrage
Meanwhile, the Sui Foundation’s decision to offer a $5 million reward has sparked further controversy. The bounty targets anyone who can provide information leading to the hacker’s identification.
On-chain investigator ZachXBT called the bounty “vague” and unhelpful. He argued that such offers only pay upon success and fail to compensate the significant time and effort that investigators invest upfront.
ZachXBT Criticizing the Bounty Offer from Cetus Protocol. Source: X/ZachXBT
Yu Xian, co-founder of blockchain security firm SlowMist, also criticized the offer. He warned that unless a hacker willingly returns the funds or faces pressure to do so, investigators often end up in prolonged chases with little hope of resolution.
“The investment cost of tracking services is very uncertain, such as threat intelligence cooperation network resource coordination, stolen user communication, law enforcement communication, investigation and evidence collection, evidence fixation, negotiation promotion, analysis reports, etc. If there is no upfront cost or deep enough cooperation resources to guarantee, it is difficult to continue to advance,” Xian added.
Ethereum (ETH) faces a critical inflection point with two powerful catalysts converging on Wednesday, May 7.
Traders are split on whether the “perfect storm” could spark a breakout or deepen recent price volatility amid mixed macro signals and waning confidence in Ethereum’s narrative.
Ethereum Faces Volatile Crossroads: Pectra Upgrade and FOMC Converge
The long-awaited Ethereum Pectra upgrade is only hours out. It is expected to introduce key enhancements such as EIP-7702 and a 2,048 ETH staking cap, improving Ethereum’s usability and efficiency.
Combined with Fed Chair Jerome Powell’s potentially dovish tone, some believe this week could ignite a powerful rally in ETH and altcoins.
“May 7th Ethereum Pectra upgrade. May 7th FOMC. Micro caps already surging. If the Crypto Lords are on our side, mother of all breakouts could happen—especially on altcoins,” said CryptoSkull on X (Twitter).
Others echoed the sentiment, albeit with caution, cognizant of the volatility of the crypto market.
“FOMC week and ETH Pectra update? Time to keep our eyes peeled. Bullish vibes are great, but let us not forget the market’s mood swings. Feds might just throw us a curveball,” another user warned.
Meanwhile, another cohort sees the collision between Pectra Upgrade and the FOMC meeting as a high-stakes convergence. Specifically, the convergence of the two events will likely trigger a reaction in the Ethereum price.
Ethereum Community Borders Along Hope, Hype, and Hard Lessons
Still, not all see the Pectra upgrade as an immediate price catalyst. Maria Magenes, VP of Strategy at Hype Partners and former Balancer and MakerDAO marketing lead, tempered expectations.
“Even if I’ve joked about my hope for a price bump, that’s not the real point of why this is exciting… Network upgrades don’t imply price bumps… These aren’t cosmetic changes…They ensure Ethereum remains the most composable, decentralized, and reliable network in the ecosystem,” she explained.
Ethereum price action against event-specific volatility. Source: Maria on X
Meanwhile, others shared a nuanced take, calling Pectra a legit volatility trigger. Beyond the technical upgrade, however, Ethereum is also contending with a broader narrative crisis.
Nevertheless, the May 7 FOMC decision adds significant uncertainty. While most analysts expect the Fed to hold rates steady, traders remain wary of Powell’s tone. A hawkish stance could derail risk-on momentum.
“We’re still seeing the risk-off mentality going into the Fed meeting…Bitcoin build-up is good…expecting ETH to turn upwards after Wednesday,” analyst Michaël van de Poppe wrote.
May 7 could shape Ethereum’s near-term fate, with the second-largest crypto by market capitalization metrics caught between protocol progress and macro peril.
On Wednesday, whether Pectra powers a rally or is drowned out by macroeconomic headwinds will be determined.
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