Bitcoin steadies as soft PCE cools October Fed rate hike bets

What happened

Core PCE rose 2% in August, which eased pressure for an October Fed rate hike. Bitcoin traded near $83,700 while rising Treasury yields capped gains.

Confirmed

Global impact / market context

Lower core PCE inflation reduces the chance the Fed raises interest rates in October, which can support Bitcoin by keeping borrowed money costs lower and making safer bond yields relatively less attractive to investors.

Analyst inference

Bitcoin traded near $83,700, but rising Treasury yields limited further gains. Higher yields mean bonds pay more, so investors may prefer safer income over Bitcoin, keeping its price steady instead of rising.

Analyst inference

What to watch

1. Core PCE rose 2% in August, so future inflation reports will show whether price pressure keeps easing and whether October Fed rate hike bets continue to cool. Confirmed
2. The Fed could still raise interest rates in October if inflation data surprises higher, so investors may watch Fed communications and upcoming inflation releases for signals about rate policy. Proposed
3. If Treasury yields keep rising, Bitcoin gains may stay capped because higher bond income gives investors a safer alternative, potentially limiting demand and keeping Bitcoin price range-bound. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• theblock.co