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

Mars Finance News, on May 12th, the U.S. April CPI data reached a three-year high, sparking market concerns about the Federal Reserve raising interest rates again. Both the stock and bond markets came under pressure, but Bitcoin performed relatively resiliently. Data shows that the U.S. April core CPI increased by 0.4% month-on-month, higher than the market expectation of 0.3%, and rose to 2.8% year-on-year; the overall CPI including energy prices increased by 3.8% year-on-year, up from 3.3% previously, reaching the highest inflation level since May 2023. Influenced by the data, the market quickly adjusted its expectations for the Federal Reserve’s policy path. CME FedWatch data shows that traders are now betting that the probability of at least one rate hike before 2026 has exceeded 35%, whereas a few weeks ago, the mainstream market expectation was for rate cuts within the year. Risk assets subsequently declined, with the Nasdaq index falling over 1.3%, and U.S. Treasury yields rising in tandem. However, the crypto market showed some resilience. Bitcoin remained above $80k after the data release, currently around $80,500, roughly flat over 24 hours; Ethereum and XRP fell about 2.5%.