Bitcoin Surges on Soft PCE Data, Reduced Rate Hike Odds
Bitcoin received a boost on September 30 as traders reduced their bets on another Federal Reserve rate hike in October. The catalyst for this change was August's Personal Consumption Expenditures data, which showed core PCE rising 3.0% year-over-year.
This figure fell short of the predicted 3.3%, and headline PCE came in at 3.4%, against a forecast of 3.7%. NY Fed President John Williams' comments on September 29, stating there was 'no need for urgency' on future rate increases, also played a role.
As a result, the odds of a Fed hike fell from above 70% to around 37% on September 30. Bitcoin responded positively to this news, briefly touching $85,598 and closing the month with a 7% gain.
This marks its first positive September since 2013 and comes despite Treasury yields sitting above 5.2%. Spot Bitcoin ETFs continued to see inflows, including a reported $2.8 billion surge in a single week.