Last Updated on 27/08/2026
Bitcoin traded slightly higher on Wednesday, consolidating after reaching a three-month high as investors turned cautious following fresh U.S. inflation data. The Federal Reserve’s preferred inflation measure remained elevated in July, adding uncertainty to the outlook for interest rates ahead of the central bank’s September policy meeting.
Bitcoin was last up around 0.2% at $78,739.7 by 17:27 ET (21:27 GMT), after surging above the $80,000 level during the previous session.
Risk sentiment also received support from developments surrounding the U.S.-Iran standoff. A Russian media report indicated that Washington and Tehran had reached a ceasefire agreement that could be announced in the coming days. The report pressured oil prices, while positive comments from Pakistan and renewed Iran-Oman discussions concerning the Strait of Hormuz further supported broader market sentiment.
U.S. PCE Inflation Remains Elevated Ahead of September Fed Meeting
Bitcoin’s recent advance has been partly driven by the so-called “debasement trade,” with investors betting that efforts by the U.S. Treasury to stabilize rising bond yields could put downward pressure on the dollar.
That environment has encouraged capital to move into alternative and scarce assets, including Bitcoin, cryptocurrencies and gold.
However, the latest U.S. inflation figures highlighted the challenge facing the Federal Reserve. The headline PCE price index increased 0.2% month over month in July, following a 0.1% decline in June. On an annual basis, PCE inflation held at 3.7%, slightly exceeding economists’ 3.6% expectation.
Core PCE inflation, which excludes volatile food and energy prices, also remained firm. The measure rose 0.2% from the previous month and 3.3% year over year, matching both the previous annual reading and market expectations.
The data suggest that inflation continues to cool only gradually, potentially encouraging Fed policymakers to maintain a cautious stance on interest rates. A renewed acceleration in inflation could undermine the debasement trade, as expectations for higher interest rates would likely strengthen the dollar and reduce the appeal of alternative assets such as Bitcoin and gold.
Bernstein Projects Bitcoin at $150K by 2027 and $300K by 2029
Bernstein remains bullish on Bitcoin’s longer-term prospects, forecasting that the cryptocurrency could reach $150,000 by mid-2027 and approximately $300,000 at the peak of its next market cycle in 2029.
The brokerage expects increasing fiscal pressures, rising government debt and higher borrowing costs to encourage policies that gradually weaken currencies. Such an environment could boost demand for scarce assets, including Bitcoin.
Bernstein’s base-case outlook assumes Bitcoin continues to follow its historical four-year market cycle. The firm projects BTC at approximately $125,000 by the end of 2026, $150,000 by mid-2027 and around $300,000 in 2029.
Crypto Market Today: Altcoins Deliver Mixed Performance
The broader cryptocurrency market also showed mixed momentum as Bitcoin’s rebound began to cool.
Ether gained around 2.5% to $2,501.98, while XRP declined 3.1% to $1.3952. Solana advanced 0.5%, and BNB climbed 1.4%, while Cardano slipped 0.8%.
Among major memecoins, Dogecoin fell approximately 0.5%, whereas $TRUMP gained 1.5%.
Overall, Bitcoin remains above the $78,000 level, but persistent U.S. inflation and uncertainty over the Federal Reserve’s September decision could determine whether the latest rebound develops into a broader sustained rally.
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