Bitcoin trapped below $86K as PCE changes cloud inflation reading

Bitcoin (BTC) held above $83,000 on Thursday after giving back gains following lower-than-expected US inflation data.

Key points:

• Bitcoin remained rangebound after its latest rally stalled at $85,600.
• US PCE inflation data came in lower than expected at 3.4% year-on-year, but methodology changes complicated the reading.
• BTC-denominated open interest fell almost 20% while its price rose 35% from its August low.

Bitcoin gives back gains after PCE release

Data from Coinbase showed BTC/USD flat on the day after a brief bout of volatility ahead of September’s monthly and third-quarter close.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Bitcoin began Q4, historically its strongest quarter, at around $83,550, after posting third-quarter gains of 42.7%, according to data from CoinGlass — its best Q3 performance since 2017.

BTC/USD quarterly returns (screenshot). Source: CoinGlass

CoinGlass’s liquidation heatmap showed potential liquidation clusters above and below Bitcoin’s market price.

On Thursday, a new $60 million cluster of estimated liquidation exposure appeared near $83,000, close to key support at $82,500 — a level that analysis marked as critical for Bitcoin’s broader rebound from June lows.