Bitcoin climbed above $85,000 after a U.S. inflation report showed lower-than-expected growth. This economic shift lowered the probability of a Federal Reserve rate increase during the October 27-28 meeting.
The 3.4% PCE reading that triggered the rally
The Personal Consumption Expenditures Price Index for August rose 3.4% year-over-year,which was 0.3 percentage points lower than the 3.7% forecast, according to the report. This cooling effect suggests the U.S. economy is slowing faster than many financial models had anticipated.
Because headline inflation only increased 0.3% month-over-month, market participants believe the Federal Reserve has less reason to tighten monetary policy. This shift has transformed Bitcoin into a primary beneficiary of the "risk-on" sentiment returning to the markets, as investors pivot away from cautious bets.
A $50 million liquidation squeeze and the October 27-28 Fed meeting
The sudden price surge caused a massive unwind for traders betting against the coin, with CoinClass reporting that $50 million in Bitcoin positions were liquidated. Of that total, $48 million came from short sellers who were caught on the wrong side of the rally.
This volatility coincided with a dramatic shift in innterest rate expectations for the Federal Reserve's October 27-28 meeting. CME FedWatch data indicates that the probability of a rate hike plummeted from roughly 70% to approximately 51.5%, a move supported by New York Fed chief John Williams' comments that the central bank does not need to act with urgency.
Uphold's inheritance tools for BTC, XRP, and HBAR
While macro data drove the price, the underlying infrastructure of the industry is evolving through new products from Uphold. The company has launched an inheritance solution for its self-custody wallet that supports Bitcoin (BTC), XRP, and HBAR.
This tool allows heirs to access digital assets without needing the original owner's custodial credentials. By solving the "lost key" problem for estates, Uphold is addressing one of the most significant barriers to long-term institutional and generational adoption of cryptocurrency.
The $155 million bet on gold-backed decentralization
The trend of merging traditional assets with blockchain is further evidenced by Amaze Holdings' binding letter of intent to acquire BullionFX. as reported,the transaction is valued at US$155 million and aims to build a decentralized financial ecosystem backed by gold.
This acquisition reflects a broader strategic shift where crypto firms are no longer just trading digital tokens but are integrating "hard assets" to provide stability. This move mirrors previous cycles where investors sought refuge in gold during periods of monetary uncertainty , now updated for the digital age.
The missing timeline for the BullionFX acquisition
Despite the excitement over the $155 million deal, the report does not specify the expected closing date for the Amaze Holdings and BullionFX merger. It remains unclear if regulatory hurdles in the United States will delay the integration of this gold-backed system.
Additionally, while the source highlights the drop in rate-hike odds, it does not provide a counter-perspective from analysts who believe inflation may remain sticky. the current optimism relies heavily on a single PCE reading, leaving the market vulnerable to any future volatility in U.S. economic data.
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