Bitcoin Briefly Hits $85,500 After Cooler U.S. PCE Inflation Data

Bitcoin (BTC) briefly climbed to about $85,500 on Sept. 30 after U.S. August PCE inflation came in below expectations, but the move largely reversed as elevated Treasury yields limited the rebound.

The data was released at 8:30 a.m. ET (12:30 UTC). The PCE price index rose 0.3% from July, while the measure excluding food and energy increased 0.2%. Annual inflation was 3.4%, with core inflation at 3.0%.

BTC later fell to about $83,700 in early Asian trading, giving back most of its initial gain. The 10-year Treasury yield remained near 5.28%, while the 30-year yield stood near 5.62%, close to its highest level since 2002.

The combination of cooler inflation and still-elevated borrowing costs left the market’s response short-lived. The next U.S. personal income and outlays release, covering September, is scheduled for Oct. 29 at 8:30 a.m. ET (12:30 UTC).