Bitcoin Fades Back Below $84K as Bond Yields Rebound
Bitcoin's brief rally above $85,000 following the release of August PCE data has fizzled out, leaving the breakout short-lived. The cryptocurrency slipped back below $84,000 after fresh US inflation data showed headline PCE inflation at 3.4% year over year and core PCE at 3.0%. This comes as government bond yields rebounded and stocks recovered.
The August PCE report from the Bureau of Economic Analysis showed a 0.3% month-over-month increase in headline inflation, while core PCE rose 0.2% month over month. Annual revisions to the national economic accounts mean comparisons with earlier releases require care, but the figures give markets a new inflation reading.
Stocks and Brent recovered as bond yields rebounded, while gold and the dollar retreated from their intraday highs. The US ten-year yield was around 5.276%, while the UK 30-year government bond yield was near 5.939%. Rising yields correspond to falling bond prices, adding another dimension to the recovery in stocks and oil.
Bitcoin's post-inflation jump above $85,000 faded below $84,000, leaving traders watching whether a renewed recovery could persist beyond the first burst of buying.