Bitcoin is confronting conflicting market forces, with short-term pressure from stronger-than-expected U.S. inflation and rising expectations for a Federal Reserve rate hike. U.S. core CPI rose 0.3% month over month in August, above market forecasts, while CME FedWatch data showed rate-hike bets for the Fed's next meeting briefly reaching 85%. CoinShares research head James Butterfill said the inflation and policy outlook could constrain Bitcoin's near-term upside, even as medium-term factors remain bullish.