Bitcoin Breaks Above $86,000 as Uptober Optimism Drives ETF Inflows

The cryptocurrency market extended its upward momentum into October. Bitcoin reclaimed the $86,000 level as cooling U.S. inflation data converged with seasonal strength expectations, while news that Strategy—the world's largest corporate Bitcoin holder—had resumed purchases further lifted investor sentiment.

According to South Korean crypto exchange Upbit on October 3, Bitcoin was trading around 116 million won (approximately $86,000) as of 3 p.m. the previous day. That marks a gain of roughly 1.8% from the same time last week and an 8.9% increase compared with early last month. CoinMarketCap data showed Bitcoin trading at $86,011, up 2.13% over the prior 24 hours, pushing back above the $86,000 threshold.

The immediate catalyst for the rally was U.S. inflation data. The August Personal Consumption Expenditures (PCE) price index—the Federal Reserve's preferred inflation gauge—rose 3.4% year-over-year, coming in below market expectations. This eased concerns about additional rate hikes, with the probability of an October rate increase plunging from 68% a week earlier to 24%.

"The August PCE reading came in below expectations, sharply lowering the odds of an October rate hike and supporting investor sentiment," said Kim Ji-won, an analyst at KB Securities.