Bitcoin fails to sustain $85,000 breakout, and bond yield spikes are blamed

Bitcoin erased a brief rally above $85,000 on Sept. 30, slipping back below $84,000 after fresh US inflation data as government bond yields rebounded and stocks recovered.The move followed the release of August personal consumption expenditures inflation at 12:30 p.m. UTC. At 3:28 p.m. UTC, Bitcoin traded close to $84,000, leaving the initial jump without a sustained breakout.Bitcoin was still up 0.56% over 24 hours at that reading. That rolling gain coexisted with the release-time rally's reversal, leaving a modest daily move after a sharp swing.The Bureau of Economic Analysis release put headline PCE inflation at 0.3% month over month and 3.4% year over year. Core PCE, which excludes food and energy, rose 0.2% month over month and 3.0% year over year.The figures gave markets a new inflation reading, but they arrived alongside an annual update to the national economic accounts. BEA said revisions to monthly personal income and outlays estimates began with January 2021, meaning comparisons with earlier releases require care.In the updated table, July's monthly headline and core inflation readings were both 0.1%, while August's headline and core readings were 0.3% and 0.2%, respecti...