Bitcoin trapped below $86K as PCE changes cloud inflation reading

What happened

Bitcoin trapped below $86K as PCE changes cloud inflation reading, according to Cointelegraph. Bitcoin erased its post-PCE gains as analysts cautioned that methodology changes complicated the lower-than-expected inflation reading. Bitcoin (BTC) held above $83,000 on Thursday after giving back gains following lower-than-expected US inflation data.

Key points: Bitcoin remained rangebound after its latest rally stalled at $85,600. US PCE inflation data came in lower than expected at 3.4% year-on-year, but methodology changes complicated the reading.

BTC-denominated open interest fell almost 20% while its price rose 35% from its August low. Bitcoin gives back gains after PCE release Data from Coinbase showed BTC/USD flat on the day after a brief bout of volatility ahead of September’s monthly and third-quarter close.

Source: CoinGlass CoinGlass’s liquidation heatmap showed potential liquidation clusters above and below Bitcoin’s market price. On Thursday, a new $60 million cluster of estimated liquidation exposure appeared near $83,000, close to key support at $82,500 — a level that analysis marked as critical for Bitcoin’s broader rebound from June lows. The advance followed a lower-than-expected US inflation reading.