The US PCE price index for August came in below expectations, reducing expectations for another Federal Reserve rate hike in October and potentially providing support for Bitcoin and other risk assets. The core PCE index rose 0.2% month over month and 3% year over year, while headline inflation rose 0.3% from July and 3.4% year over year. Brendan Ma, head of investment strategy at Arbitrum Foundation, said the 0.2% monthly rise in core PCE is good news for the Fed, and if September CPI points in the same direction, pressure for an October rate hike eases. Martin Lee, lead market insights analyst at DWF Labs, said the slowing figures could reduce the risk of another rate hike and may shift positioning to the upside, with Bitcoin volatility still near its yearly low while options skew is broadly neutral. Vetle Lunde, an analyst at K33, said Bitcoin is being held back by surging government bond yields, which are pushing investors away from risk, even as the cryptocurrency continues to build a price base after posting its highest weekly close since January. Bitcoin recently traded at about 83,700 dollars, up less than 1% over the past 24 hours. Ether was at about 2,700 dollars and is on track to gain nearly 70% in the third quarter, while XRP fell about 2% to 1.50 dollars but is set to close the quarter up more than 40%. Ilya Kalchev, an analyst at Nexo Dispatch, said the broader crypto market still shows signs of profit-taking, with seven-day altcoin transfers into exchanges hitting their highest level since October 2025.
BitcoinSoft August PCE lowers odds of an October Fed rate hike, easing macro pressure on Bitcoin as a risk asset.
