Bitcoin Surges Past $86,000 as Inflation Data and ETF Inflows Boost Sentiment

Bitcoin surged above $86,000 as investors buoyed by cooling U.S. inflation data and seasonal strength expectations for October.

The August PCE price index came in below forecasts, easing rate-hike concerns and sending the probability of an October rate increase plunging from 68% to 24%.

Strategy, the world's largest corporate Bitcoin holder, disclosed an additional purchase of 1,665 BTC, while spot Bitcoin ETFs saw net inflows exceeding $100 million, further supporting investor sentiment.

The SEC also signaled a market-friendly stance by proposing new crypto custody rules.