📉 Bitcoin Reacts to Cooler PCE — Inflation Eases, Fed Pressure Shifts

The U.S. has released its August PCE inflation data, and the numbers came in softer than expected.

📊 Key numbers:

🔹 Headline PCE: 3.4% YoY
🔹 Core PCE: 3.0% YoY
🔹 Inflation came in below expectations
🔹 Market expectations for an October Fed rate hike eased after the release

The data initially supported risk assets, with Bitcoin moving higher as traders reassessed the interest-rate outlook.

But there is still a major factor to watch 👀

🇺🇸 U.S. Treasury yields remain elevated, meaning financial conditions are still relatively tight even with the softer inflation reading.

So the Bitcoin setup now has two competing forces:

🟢 Cooler inflation → less immediate pressure for tighter Fed policy
🔴 Elevated Treasury yields → continued pressure on risk assets

The next question is whether this inflation improvement can translate into sustained demand for Bitcoin.

Do you think softer PCE will give BTC more room to recover, or will high Treasury yields remain the bigger problem?

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