Bitcoin’s $85,000 test comes as Wall Street gets two different inflation stories

Bitcoin is testing the $85,000 level as markets weigh conflicting inflation signals: softer headline data suggest easing price pressures, while persistent underlying inflation and resilient economic activity argue for caution. The mixed outlook is keeping Federal Reserve rate-cut expectations and Treasury yields volatile, creating uncertainty for risk assets. Bitcoin’s ability to hold or break $85,000 will likely depend on how markets reconcile these inflation narratives and reprice monetary policy.