Bitcoin Climbs Above $85,000 as Softer Inflation Eases Fed Pressure
August headline PCE inflation rose 3.4% year over year, below the 3.7% expectation, while Bitcoin’s 24-hour range reached $87,251.25.
Bitcoin (BTC) traded above $85,000 on Wednesday after softer U.S. inflation data reduced pressure for another Federal Reserve rate increase, easing a key concern for risk-sensitive markets.
The Personal Consumption Expenditures price index rose 3.4% in August from a year earlier and 0.3% from July. Annual inflation was below the 3.7% expectation. Core PCE inflation, which excludes food and energy, increased 3% year over year and 0.2% month over month.
Bitcoin’s 24-hour trading range reached $87,251.25, with a low of $83,654.39. The available market data does not establish the precise time the cryptocurrency first crossed $85,000.
The reading followed the Federal Reserve’s Sept. 16 decision to raise its federal funds target range by 25 basis points to 3.75%-4%. New York Fed President John C. Williams said Tuesday that there was “no need for urgency” after the policy move and that officials had time to gather more information.
The inflation report weakened the case for immediate additional tightening, providing a more supportive backdrop for Bitcoin after the Fed’s latest rate increase.
