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🚨 Hotter-Than-Expected US Inflation Crushes Fed Cut Hopes — Bitcoin Slips Below Pressure
US inflation came in hotter than expected across every major metric in April, reinforcing expectations that the Federal Reserve will keep interest rates unchanged through 2026.
Headline CPI rose 3.8% YoY, above the 3.7% forecast and sharply higher than March’s 3.3%. Monthly CPI jumped 0.6%, doubling expectations. Core CPI also exceeded estimates, signaling that inflation remains stubborn despite months of tight monetary policy.
Markets reacted immediately:
•US 10-year Treasury yields climbed to 4.44%
•Stock futures fell
•WTI oil surged 3% to $101/barrel
•Bitcoin dropped 1.2% to around $80.6K
The data effectively killed near-term hopes for Fed rate cuts, with markets now expecting higher rates to remain in place well into 2027. Adding to the pressure, incoming Fed Chair Kevin Warsh is viewed as more hawkish on inflation than Jerome Powell.
For crypto, the report weakens one of the biggest bullish narratives of 2026: Fed easing and liquidity expansion. Institutional investors may become more cautious toward risk assets if inflation and oil prices continue rising.
Bitcoin has so far defended the crucial $80K support zone, but upcoming PPI and retail sales data could determine whether bulls can maintain momentum.
#BTC #ETF #Fed #Crypto #Inflation
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