Bitcoin Drops Back Under $85,000 Following Brief Gain on Cooler US Inflation Data
Bitcoin quickly retreated below the $85,000 threshold after an initial rally sparked by lower-than-anticipated core PCE inflation data.
Bitcoin briefly crossed above $85,000 following the release of favorable US inflation data before retreating within hours. On September 30, 2026, the cryptocurrency traded near $84,070, having fluctuated between $82,951 and $85,518 over the previous 24 hours. The price level sits roughly 33% below its record high of $126,080 set on October 6, 2025, and marks a weekly drop of about 4%.
The initial surge followed Commerce Department data showing that the core PCE index rose 0.2% in August, undercutting the 0.3% forecast. On an annual basis, core inflation slowed to 3.0% from 3.3% in July. The report led futures traders to cut the estimated probability of an October interest rate hike from roughly 70% to 35%, temporarily boosting non-yielding digital assets.
Upward momentum stalled amid competing macroeconomic pressures, including the Federal Reserve's benchmark rate increase to a range of 3.75% to 4% on September 16. In addition, the 10-year Treasury yield stood near 5.17% on September 25, offering fixed returns of around $5,170 annually per $100,000 invested and incentivizing investors to take profits into Bitcoin price increases.
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