Bitcoin Soars Past $85k on Cooler US Inflation Data

Bitcoin (BTC) has surpassed $85,000 in value after inflation data from the US revealed lower-than-expected numbers. The August PCE price index showed a 0.3% increase month over month and 3.4% year over year, while core PCE, which excludes food and energy prices, rose by 0.2% month over month and 3.0% annually.

The figures were below forecasts of 3.7% for headline inflation and 3.3% for core inflation, sparking hopes that the Federal Reserve may not raise interest rates as soon as expected. Despite Treasury yields remaining high, with the 10-year yield at 5.26%, the 20-year yield at 5.64%, and the 30-year yield at 5.59%, Bitcoin's price climbed to an intraday high of $85,598.94 before easing to around $84,376.09, representing a 0.9% increase for the day.

The Federal Reserve's next move remains uncertain, with interest-rate futures pricing in a roughly one-in-three chance of a 25-basis-point hike in October. Core inflation remains above the Fed's 2% target, keeping monetary policy and borrowing costs under scrutiny for crypto markets.