Bitcoin Rallies as US PCE Inflation Data Shows Cooling Trends

Bitcoin and equities rebounded following the release of August US PCE data, which showed inflation rising slower than expected. The core PCE index rose 0.2% monthly, bringing the annual rate to 3%. Despite cooling inflation, US consumer spending saw its strongest real increase since March 2025, rising 0.6% after inflation adjustments. While the data reduces recession risks, the Federal Reserve remains cautious as consumer demand continues to outpace income growth.