The U.S. Personal Consumption Expenditures (PCE) price index increased to 2.7% year-on-year in August 2025, marking the highest level in six months, according to the U.S. Bureau of Economic Analysis. This rise in inflation has prompted a surge in Bitcoin prices, reflecting increased market volatility. The inflation data has intensified discussions around Bitcoin's potential as an inflation hedge, as investors closely watch the Federal Reserve's policy responses to the rising inflation rate. The cryptocurrency market's reaction underscores the ongoing interest in digital assets amid economic uncertainties.