Bitcoin trades flat after US August 2026 inflation rises 0.4%

Bitcoin (BTC) is trading at $77,299, posting a modest gain on the session. The price sits below its principal short- and medium-term moving averages in the recent timeframe, while remaining higher than its long-term average.

Highlights

• US inflation rose 0.4% in August 2026, increasing scrutiny of the Federal Reserve policy outlook and monetary conditions.
• Elevated inflation data has emerged as a central driver of digital asset price action and investor positioning over the session.
• BTC/USD faces strong downside momentum, short-term selling pressure, and a projected price range of $74,483 to $79,261 with a high probability of further declines.

Fed outlook shifts as August inflation dampens bitcoin sentiment

A reported 0.4% increase in US inflation for August 2026 has brought greater attention to the Federal Reserve's policy outlook, as higher inflation typically shifts expectations toward tighter monetary conditions. This dynamic can dampen demand for riskier assets like Bitcoin by increasing opportunity costs and contributing to a more cautious investment climate. According to Reuters, evolving US inflation data has been a central driver of price action and sentiment in the digital asset space over the session.