Bitcoin Jumps on Cool PCE Inflation Data as Bond Yields Hit 20-Year Highs

What happened

Bitcoin Jumps on Cool PCE Inflation Data as Bond Yields Hit 20-Year Highs, according to Decrypt. The Fed's favorite inflation gauge came in cooler than expected, rate-hike odds fell and Bitcoin traders took the hint. Decrypt News Markets Bitcoin Jumps on Cool PCE Inflation Data as Bond Yields Hit 20-Year Highs The Fed's favorite inflation gauge came in cooler than expected, rate-hike odds fell and Bitcoin traders took the hint.

In brief August core PCE rose 3.0% year over year against 3.3% expected, and headline PCE came in at 3.4% versus 3.7%. October rate-hike odds now sit at 34.9%.

Bitcoin popped above $85,000 to a high of $85,598.94, then eased to $84,376, up 0.9%. That's still inside the range it has held since its September surge.

On Myriad, traders put just 7% odds on Bitcoin topping its $126,199 all-time high before 2027, and ETF (a fund traded on a stock exchange like a share) inflows have faded since their $2.4 billion week. Bitcoin is doing something Wall Street can't right now: staying calm.

The Federal Reserve's preferred inflation gauge, the PCE index, rose 0.3% in August and 3.4% from a year earlier, below the 0.4% and 3.7% economists expected. Bitcoin reacted, pushing above $85,000 to a high of $85,598.94 before easing back to $84,376.09.