Bitcoin Surges Above $85,000 as Softer Inflation Eases Fed Pressure

Bitcoin (BTC) surged above $85,000 on Wednesday following softer US inflation data that eased pressure for another Federal Reserve rate increase.

The Personal Consumption Expenditures price index rose 3.4% in August from a year earlier and 0.3% from July, below the expected 3.7% annual inflation.

Core PCE inflation, which excludes food and energy, increased 3% year over year and 0.2% month over month.

The Federal Reserve's decision to raise its federal funds target range by 25 basis points to 3.75%-4% on September 16 was followed by a statement from New York Fed President John C. Williams that there was 'no need for urgency' after the policy move and that officials had time to gather more information.