Bitcoin Soars on Cooling Inflation Rate to 3%

Bitcoin's price surged on Wednesday after the release of the Federal Reserve's preferred inflation gauge, which showed a cooling in price pressures more than expected in August.

The Commerce Department's personal consumption expenditures (PCE) price index rose by 0.3% for the month, with the 12-month gain at 3.4%. Economists had forecasted increases of 0.3% and 3.7%, respectively.

The core PCE, which excludes food and energy prices, climbed 0.2% in August, bringing the annual core rate down to 3%. This was notably lighter than anticipated, with forecasts calling for a 0.3% monthly gain and a 3.3% annual rate.