Bitcoin Rebounds Above $84,000 as Softer US Inflation Supports Risk Appetite
Bitcoin price recovered to $84,098 after a brief dip to $83,362 on October 1, driven by softer US PCE inflation data that boosted risk sentiment. The cryptocurrency rose 0.99% in the past 24 hours and 0.39% in a week. US Treasury yields remained high, but markets now price in a near 63% chance of an October Fed rate hike by 400-425 bps.
Despite $125.6 million in daily net outflows from US spot Bitcoin ETFs and $59.9 million worth of Ethereum ETF withdrawals, institutional flows did not directly influence the price direction, according to Nischal Shetty, Founder of WazirX.
Crypto markets remain caught between improving inflation signals and a still-restrictive macro backdrop, with BTC consolidating near $83,500. Minal Thukral, Executive VP, Growth & Crypto Business Head at CoinDCX, noted that top gainers were Midnight and Stacks with 25.23% and 22.81%, respectively.
The next major catalyst is US jobs data, which could cool yields and support a renewed move higher or reinforce the higher-for-longer rate narrative and keep BTC range-bound or under pressure, according to Vikram Subburaj, CEO of Giottus.