Bitcoin loses $85,000 breakout as government bond yields rebound

Bitcoin briefly rose above $85,000 on Sept. 30, then slipped below $84,000 after the release of August U.S. inflation data as government bond yields rebounded and stocks recovered. The August personal consumption expenditures inflation figures were released at 12:30 p.m. UTC. At 3:28 p.m. UTC, Bitcoin traded close to $84,000, leaving its initial jump without a sustained breakout. Bitcoin was still up 0.56% over 24 hours at that reading. The Bureau of Economic Analysis put August headline personal consumption expenditures inflation at 0.3% month over month and 3.4% year over year. Core inflation, which excludes food and energy, rose 0.2% month over month and 3.0% year over year. The release also included an annual update to the national economic accounts. The Bureau of Economic Analysis said revisions to monthly personal income and outlays estimates began with January 2021, so comparisons with earlier releases require care. In the updated table, July's monthly headline and core inflation readings were both 0.1%. August's monthly headline and core readings were 0.3% and 0.2%, respectively. Annual headline inflation remained above the Federal Reserve's longer-run 2% target for annual personal consumption expenditures inflation. The release added information to the policy debate but did not determine the Federal Reserve's next decision. The SPDR S&P 500 ETF Trust traded around $766.82. Brent spot crude rebounded toward $102.20 a barrel. Gold was quoted through a contract for difference at around $4,163.92 an ounce, below an earlier level above $4,200. The U.S. Dollar Index stood near 101.39 after retreating from an earlier high. The U.S. ten-year government bond yield was around 5.276%. The U.K. 30-year government bond yield was near 5.939%. The afternoon market readings cover different intraday windows, so they do not isolate each instrument's response to the inflation release. The inflation report measures August, while subsequent manufacturing and employment readings cover September. A later Bitcoin price below $84,000 left traders watching whether another recovery could last beyond its initial rise.