The PCE index rose 0.3% in August, totaling a 3.4% annual increase, while core PCE rose 0.2% monthly and 3.0% annually. These figures fell below economist expectations of 0.4% and 3.7% for the PCE index, and 0.3% and 3.3% for core PCE. Following the data release, the CME FedWatch tool indicates a 62% probability that the Federal Reserve will maintain current interest rates.
Bitcoin reached a daily high of $85 598.94 before adjusting to $84 376.09. The total cryptocurrency market capitalization remains just below $3 trillion. Meanwhile, the 10-year Treasury yield reached approximately 5.25%, marking its highest level since 2002. Consumer confidence has hit a 12-year low, and August job openings were reported at 7.08 million.
Technical indicators show Bitcoin trading 8% above its 50-day EMA of $77 809.88, with the 200-day EMA at $74 423.93. The Average Directional Index stands at 41.9, suggesting a strong trend, while the Relative Strength Index is at 63.4. Bitcoin has fluctuated within a range of $82 600 to $85 600 over the past week.
Prediction markets on the Myriad platform estimate a 7% probability of Bitcoin reaching its previous record high of $126 199.63 before 2027. Current short-term projections suggest a 49% likelihood that the price remains above $84 000, with a 21% chance of exceeding $86 000 by Monday.
