Crypto Prices Rise as August Inflation Stays Above Fed Target
Bitcoin, Ether and XRP advanced as the personal consumption expenditures price index rose 3.4% annually in August.
Bitcoin (BTC), Ether (ETH) and XRP rose as August inflation remained above the Federal Reserve’s 2% target, keeping a key measure of price pressure in focus for crypto markets.
The Bureau of Economic Analysis (BEA) released its August Personal Income and Outlays report at 8:30 a.m. ET (12:30 p.m. UTC) on Sept. 30. The personal consumption expenditures price index increased 0.3% from July and 3.4% from a year earlier.
Core PCE, which excludes food and energy, rose 0.2% month over month and 3.0% annually. The PCE index is the Federal Reserve’s preferred broad inflation gauge.
The figures left headline and core inflation above the central bank’s 2% target. That makes the report relevant to markets that track interest-rate expectations and broader financial conditions, including digital assets.
The 10-year Treasury yield stood at 4.89% on Sept. 29, based on market quotations obtained at or near 3:30 p.m. ET.
Bitcoin, Ether and XRP advanced during the market move. Bitcoin reached $83,825.17, Ether fell as low as $2,679.29 and XRP settled at $1.4975.
The next market focus is how investors interpret inflation that remains above the Federal Reserve’s target while crypto assets continue to trade against a broader interest-rate backdrop.
