U.S. April inflation soars, but Bitcoin "resists pressure" and holds the $80k level

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BlockBeats news: On May 12, U.S. April CPI data hit a three-year high, triggering market concerns about the Federal Reserve resuming rate hikes. Both the U.S. stock market and the bond market were under pressure, but Bitcoin held up relatively strongly. Data shows that U.S. April core CPI rose 0.4% month-over-month, higher than the market expectation of 0.3%, and increased to 2.8% year-over-year. Overall CPI, including energy prices, rose 3.8% year-over-year, higher than the prior reading of 3.3%, reaching the highest inflation level since May 2023.

Driven by the data, the market quickly adjusted its expectations for the Federal Reserve’s policy path. CME FedWatch data shows that traders are currently pricing in a probability of more than 35% that there will be at least one rate hike within 2026, whereas just a few weeks ago the mainstream market expectation was for rate cuts within the year. Risk assets then pulled back; the Nasdaq index fell by over 1.3%, and U.S. Treasury yields rose in tandem. However, the crypto market showed some resilience.

After the data was released, Bitcoin remained above $80,000, temporarily at about $80,500, roughly flat over the past 24 hours. Ethereum and XRP, by contrast, fell by about 2.5%.

BTC-1.5%
ETH-2.43%
XRP-2.37%
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