1434 GMT - Bitcoin and ether are likely to rise if U.S. interest-rate expectations are repriced lower and yield differentials move against the dollar, LMAX Group's Joel Kruger says in a note. Recent data showing softer PCE inflation and subdued hourly earnings growth point to an easing in underlying price pressures, he says. However, services inflation remains elevated and Middle East energy supplies are fragile. "We therefore continue to watch whether improving inflation signals translate into a lasting turn in yields and the [dollar]." A sustained dollar reversal, accompanied by easing yields and healthy risk appetite could support bitcoin and ether, he says. Bitcoin rises 0.6% to $86,321, LSEG data show. Ether increases 0.2% to $2,718.