Bitcoin Price Surges Past $85K on Cooler-Than-Expected Inflation Report
The Bitcoin price surged to $85,600 in the past hour after the US Bureau of Economic Analysis released its core PCE report. The report showed that consumer prices posted a smaller-than-expected increase in August from a year ago. The personal consumption expenditures price index increased by 0.3% for the month, putting the 12-month gain at 3.4%. However, excluding food and energy, PCE posted a 0.2% increase, which put the annual core level at 3%, contrary to expectations of a 0.3% increase and 3.3% annual rate.
This news was welcomed by crypto traders, who saw it as a sign of cooling inflation. Many altcoins also surged in value, including ZEC, HYPE, ETH, SOL, and others. David Russel, global head of market strategy at TradeStation, noted that this is 'good news for investors worried about the recent surge in bond yields, and it bolsters the case for not hiking in October.'