Forex
Bitcoin Holds Above $83K as Rally on Lower US Inflation Data Fades
Bitcoin's recent rally above $83K has cooled off after the US inflation data release on Thursday. The Personal Consumption Expenditures (PCE) price index came in at 3.4% year-on-year, lower than expected.
The PCE reading also incorporated methodology changes that could reduce core PCE inflation by up to 20 basis points. Markets had been expecting a 3.7% increase.
BTC-denominated open interest fell almost 20%, while Bitcoin's price rose 35% from its August low, making the rally less susceptible to leverage flushes.