Bitcoin's soft-inflation pop to $85,500 fades as bond yields refuse to fall — SkimNews
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- Bitcoin rallied briefly to $85,500 on a softer-than-expected August PCE report showing 3.4% year-over-year headline inflation and 3.0% ex-food-and-energy, then settled at just above $83,700 — up 0.4% in Thursday Asian trading.
- Treasury yields refused to follow inflation lower, with the 10-year trading around 5.28% near its highest level since 2002 and the 30-year steadying at 5.62% after hitting a 2002 high during New York trading.
- Dan Khus, chief analyst at LVRG Research, said the soft PCE has reduced the odds of another Federal Reserve rate increase in October and made December the more likely next move.
- HYPE led major altcoins with a 3% gain to about $89, while Dogecoin added nearly 2% to just under 10 cents; Solana slipped nearly 1% to just under $119 and XRP was flat at $1.50, per CoinDesk data.
- Micron Technology's upbeat forecast lifted chip stocks across the region, sending Japan's Nikkei up 2.7% and South Korea's Kospi up 1.2%.
- Alphabet gained 1.5% in extended trading as Google began rolling out Gemini 4 Argon, its new flagship AI model.
Why it matters: Per LVRG Research, the soft PCE has made December more likely than October for the Fed's next move, yet 10-year yields are still near 2002 highs — meaning the cost-of-capital headwind for risk assets hasn't lifted. The article makes clear that any sustained bitcoin rally requires the 10-year to actually break lower, not just inflation data to cool.
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