Bitcoin Fails to Hold $85k as Bond Yields Rebound

Bitcoin's brief rally above $85,000 was short-lived as it slipped back below $84,000 after fresh US inflation data. The move followed the release of August personal consumption expenditures inflation at 12:30 p.m. UTC. At 3:28 p.m. UTC, Bitcoin traded close to $84,000, leaving the initial jump without a sustained breakout.

The Bureau of Economic Analysis released figures showing headline PCE inflation at 0.3% month over month and 3.4% year over year. Core PCE, which excludes food and energy, rose 0.2% month over month and 3.0% year over year.

The government bond yields rebounded and stocks recovered following the release of inflation data. The SPDR S&P 500 ETF Trust traded around $766.82, while Brent spot crude rebounded toward $102.20 a barrel.