Bitcoin could benefit from a more accommodative rate environment after U.S. inflation data came in below expectations, reducing pressure for further Federal Reserve tightening. The August PCE price index rose 0.3% month-over-month and 3.4% year-over-year, while core PCE increased 0.2% monthly and 3.0% annually. These softer-than-anticipated figures have dampened market expectations for an October rate hike, potentially providing support for Bitcoin and other risk assets. Market analysts suggest that if September CPI data mirrors this trend, the case for additional tightening weakens further. However, elevated U.S. Treasury yields remain a headwind for risk assets. Meanwhile, the crypto market faces near-term profit-taking pressure, with altcoin inflows to exchanges reaching their highest level since October 2025, signaling potential selling activity.