Bitcoin Holds Ground at $83K as Inflation Data Rally Fades

Bitcoin maintained its price above $83,000 on Thursday, following a brief reversal after the release of lower-than-expected US inflation data. The Personal Consumption Expenditures (PCE) price index came in at 3.4% year-on-year in August, versus expectations of 3.7%. This reading, however, was complicated by methodology changes affecting certain categories.

The rally in Bitcoin's price stalled at $85,600, with some analysts warning that markets may 'heavily discount' the August reading. Despite this, Bitcoin began the fourth quarter with a 42.7% gain in the third quarter, its best Q3 performance since 2017.

Falling futures open interest could make Bitcoin's rally less vulnerable to forced liquidations, according to onchain analytics platform Glassnode. The platform highlighted a divergence between Bitcoin's price and BTC-denominated open interest, which measures outstanding futures positions in Bitcoin terms.