Inflation Misses Estimates, Bitcoin Surges to $85,518

Bitcoin's price recently surged to $85,518 after data showed that inflation rose slower than expected. The personal consumption expenditures price index, the Federal Reserve's main inflation gauge, increased by 3.4% in August on headline and 3% for core, both well below estimates.

This news reduces the likelihood of the Federal Reserve hiking interest rates in October. High inflation has led the central bank to adopt a more hawkish approach to managing monetary policy.

Kevin Warsh, the Fed chair, said in his first speech that the U.S. central bank had 'more work to do' to fight inflation. He emphasized that 'inflation is too high, and has been for too long.'