Bitcoin Soars Past $85K on Cooler-Than-Expected US Inflation Report

Bitcoin's price surged to $85,600 after the US Bureau of Economic Analysis released its core PCE report. The data showed 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 that put the annual core level at 3%, which was cooler than expected.

David Russel, global head of market strategy at TradeStation, said this is 'good news for investors worried about the recent surge in bond yields,' and it bolsters the case for not hiking interest rates in October. Many altcoins also surged in the past hour, including ZEC, which is up more than 3.6%, HYPE, up 1.1%, ETH up 1.5%, SOL up 2.2%, and others.