Hot inflation data pours cold water on Federal Reserve rate cut hopes
Higher-than-expected U.S. inflation data has dampened expectations for Federal Reserve interest rate cuts.Summary
U.S. inflation data released on Wednesday came in hotter than economists anticipated, with the Consumer Price Index (CPI) rising 3.8% year-over-year in April. Core CPI, which excludes volatile food and energy costs, also exceeded forecasts. This data reinforces the expectation that the Federal Reserve will maintain steady interest rates through the end of the year.
Following the report, Bitcoin saw a slight decline, trading around $80,814. Financial markets reacted broadly, with U.S. stock index futures falling and the 10-year treasury yield increasing to 4.44%. Additionally, WTI crude oil prices rose by 3% to $101.
Amidst this macro volatility, Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, remains bullish on Bitcoin. He suggests that Bitcoin is on track to reach $126,000, noting that a break above $90,000 could trigger an explosive rally due to short-covering by call-option sellers.
(Source：CoinDesk)