Bitcoin Surpasses $85,000 as Cooler US PCE Inflation Curbs Fed Rate Hike Odds

Bitcoin rallied above $85,000, touching an intraday peak of $85,600 after cooler-than-expected U.S. Personal Consumption Expenditures data reduced expectations for further Federal Reserve rate increases. The headline PCE rose 0.3% month-over-month and 3.4% annually, below forecasts, while core PCE rose 0.2% monthly and 3.0% annually. The data sent October rate hike odds below 50%, down from 68% to 70%. Bitcoin surged from under $84,000 within an hour of the release, triggering $50 million in liquidations, of which short positions accounted for $48 million.