Bitcoin Rally Falters on Lower-than-Expected Inflation Data
Bitcoin's rally stalled at $85,600 after the latest US inflation data release. The Personal Consumption Expenditures (PCE) price index came in lower than expected at 3.4% year-on-year, but methodology changes added complexity to the reading.
The August PCE data also incorporated changes affecting certain sectors, such as portfolio management and investment advice, computer software and accessories, and legal services. The Bureau of Economic Analysis (BEA) estimated that these methodological adjustments could reduce Core PCE inflation by up to 20 basis points.
Bitcoin remained rangebound after the latest rally, with its price holding above $83,000. However, a new $60 million cluster of estimated liquidation exposure appeared near $83,000, close to key support at $82,500.