Bitcoin Jumps to $81.5K as Strong US GDP and PCE Data Offset Tech Selloff

Bitcoin (BTC) climbed to $81,547 on Bitstamp after the Wall Street opening on Thursday, reversing an earlier decline to $79,607. The rally was driven by resilient US economic data and occurred despite a 12% drop in Alphabet shares following the tech company’s third-quarter earnings and revenue miss.

The US Bureau of Economic Analysis reported that the Personal Consumption Expenditures price index rose 0.5% from August and 3.6% year over year. Core PCE, excluding food and energy, increased 3.1% over the same annual period. Q3 real GDP also beat estimates, reaching 3.4% compared with the 3.2% expected by analysts.

US stock markets opened lower, led by Alphabet’s earnings decline, while the Federal Open Market Committee left interest rates unchanged at 3.75%–4%. Fed Chair Kevin Warsh said economic activity was expanding at a strong pace but described inflation as elevated, adding that consumer spending, productivity, capital investment and job growth remained resilient.

Technically, Bitcoin needs to reclaim the $81,400 area by the weekly close to strengthen its breakout, according to Rekt Capital. A sustained move above that level could improve the outlook for BTC, while a rejection would leave the market focused on the recent $79,607 support area.