Bitcoin reached a price of $85,598 on September 30 following the release of August Personal Consumption Expenditures (PCE) data. The core PCE index rose by 3.0% year-over-year, which was lower than the 3.3% forecast by analysts.
Market sentiment shifted after comments from New York Fed President John Williams on September 29, who stated there was no urgency for further rate hikes. Consequently, the probability of an October rate increase dropped from over 70% to approximately 37%.
Bitcoin concluded September with a 7% gain, marking its first positive September following a positive August since 2013. This growth occurred despite Treasury yields remaining above 5.2%.
Spot Bitcoin ETFs reported continued capital inflows, including a surge of $2.8 billion in a single week. Zach Pandl from Grayscale characterized the recent Federal Reserve policy actions as a mid-cycle adjustment rather than an aggressive tightening campaign.
