Bitcoin Maintains $83K Support Amid US Inflation Data Release

Bitcoin held steady above $83,000 on Thursday after its recent rally stalled following lower-than-expected US inflation data. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, came in at 3.4% year-on-year in August, versus expectations of 3.7%. This reading was complicated by methodology changes affecting portfolio management and investment advice, computer software and accessories, and legal services.

The release of PCE data caused a brief bout of volatility ahead of September's monthly and third-quarter close. However, the market quickly regained its composure, with BTCUSD remaining flat on the day. This stability is notable given the significant gains Bitcoin has experienced in recent months, with its price rising 35% from its August low.

Despite this resilience, some analysts suggest that falling futures open interest could make Bitcoin's rally less vulnerable to forced liquidations. According to Glassnode, BTC-denominated open interest fell almost 20% while its price rose 35%, putting it at its lowest since March. This divergence between price and open interest may indicate a reduced risk of leverage flushes.