Bitcoin Climbs Above $85,000 After Cooler PCE Inflation Reading
August PCE inflation rose 3.4% annually, while elevated Treasury yields kept pressure on risk assets.
Bitcoin (BTC) climbed above $85,000 on Sept. 30 after U.S. inflation data came in below forecasts, easing expectations for another Federal Reserve rate increase despite elevated Treasury yields.
The August PCE price index increased 0.3% month over month and 3.4% year over year. Core PCE, which excludes food and energy, increased 0.2% month over month and 3.0% annually. The figures were below forecasts of 3.7% for headline inflation and 3.3% for core inflation.
Bitcoin reached an intraday high of $85,598.94 before easing to about $84,376.09, leaving it up 0.9% on the day. Reported session highs varied slightly across market-price series.
Treasury yields remained high. The 10-year yield was 5.26% on Sept. 29, while the 20-year and 30-year yields were 5.64% and 5.59%, respectively.
Interest-rate futures priced roughly a one-in-three chance of a 25-basis-point Federal Reserve hike in October. Core inflation remains above the Fed’s 2% target, keeping monetary policy and borrowing costs in focus for crypto markets.
