The price of Bitcoin rose higher following the release of better-than-expected inflation data on Wednesday.

Bitcoin added 1.4% over the last 24 hours to $85,380 on Tuesday, according to CoinDesk. The cryptocurrency is down 2.5% this year, but is up 45% this quarter, pacing its best quarterly performance since 2024, according to Dow Jones Market Data.

The personal consumption expenditures, or PCE, price index reached 3.4% year over year in August, below consensus projections to remain at 3.7%. Core inflation cooled to 3%, below estimates of 3.3%. The Bureau of Economic Analysis report briefly lowered 10-year and two-year Treasury yields.

The odds of an interest rate hike from the Fed in October fell on the report. Rate hikes tend to weigh on cryptocurrencies and other risk assets as traders shift toward safer, yield-bearing investments.

Strategy shares rose 1%. Coinbase dropped 1.1%, and Robinhood Markets fell 0.8%.

Robinhood unveiled artificial-intelligence agents on Tuesday that can run on users' behalf, as well as 24/7 weekend trading for equities on its online platform.

Strategy, the largest institutional holder of Bitcoin, said Monday it purchased another $142.7 million of the cryptocurrency last week as it hit an eight-month high. It's the second-such purchase from Strategy in as many weeks, after buying $396.7 million worth of Bitcoin the prior week.