Bitcoin Rallies Cools as Inflation Data Complicates Interest Rate Outlook

Bitcoin's recent rebound rally cooled off on Wednesday after data showed that the Federal Reserve's preferred inflation gauge held steady in July, complicating the outlook for interest rates ahead of the central bank's September meeting.

The price of Bitcoin fell 0.5% to $78,217.5 by 09:55 ET (13:55 GMT) after blazing past $80,000 earlier in the week.

The Federal Reserve's preferred inflation gauge held steady at 3.7% ahead of the September meeting, which could offset the 'debasement trade' that has fueled Bitcoin's recent rally.

Bernstein expects Bitcoin to reach $150,000 by mid-2027 and about $300,000 at the peak of its next cycle in 2029, helped by rising fiscal pressures and the 'debasement trade.'