Bitcoin Back Above $81,000 as US GDP Beats Forecasts and Inflation Heats Up

Bitcoin climbed back above $81,400 after the US economy grew 3.4% annualized in the third quarter, ahead of the 3.1% forecast and the 2.2% seen in the second quarter. Private investment jumped 19.4%, led by a 20.9% rise in equipment spending tied to the AI buildout. Consumer spending rose 3.8%.

September PCE Inflation Stays Elevated

The PCE price index rose 0.5% in September, taking the annual rate to 3.6%, while core PCE hit 3.1%. Gasoline and other energy goods climbed 9.2% in the month. Spending grew 0.5% and income rose 0.2%, both slightly under forecasts. Jobless claims fell to 194,000, close to late 1960s lows.

What It Means for the Fed and Bitcoin Price

The data came a day after the Fed held rates at 3.75% to 4%, and traders still see about a 78% chance of a December hike. Chris Rupkey of Fwdbonds said growth is powering ahead despite higher energy costs. Stock futures slipped and Treasury yields fell, while Bitcoin held above $81,000.