Hot inflation data dims Federal Reserve rate cut prospects, Bitcoin slips 1.2%
Crypto Briefing
Unexpectedly high CPI data has caused Bitcoin to decline and forced markets to push back expectations for Federal Reserve interest rate cuts.Summary
April's Consumer Price Index (CPI) rose by 0.4% month-over-month, exceeding analyst expectations and signaling persistent inflation. Consequently, the Federal Reserve is now widely expected to maintain current interest rates throughout the year, with some institutions delaying potential cuts until 2027 or 2028. This shift in monetary policy has pressured Bitcoin, which dipped 1.2% as its reputation as an inflation hedge faced renewed scrutiny. While rising Treasury yields make traditional assets more attractive, some analysts like Arthur Hayes remain bullish, arguing that long-term global liquidity will eventually support Bitcoin's price growth.
(Source：Crypto Briefing)