Softer Inflation Pushes Bitcoin above $85K, But Can It Hold?

Bitcoin (BTC) experienced an inflation-fueled push above $85,000 after softer than predicted PCE inflation data. The price currently trades at $84,100, up 1.3% over 24 hours, following a peak of $85,500 in reaction to the inflation report.

The PCE inflation rate came in at 3.4% year-over-year, while core PCE increased 3.0%. The monthly core inflation rate was 0.2%, below the forecasted 0.3%. This softer inflation picture eased pressure on the Federal Reserve to raise interest rates.

However, the move was short-lived as the 10-year Treasury yield remained near 5.3% and the 30-year yield stayed close to its highest levels since 2002. The price action indicates consolidation after a failed breakout, with support sitting at $82,500-$83,000.