$BTC U.S. May PCE annual rate unexpectedly breaks through the 4% mark, hitting a nearly three-year high. Combined with the Middle East conflict driving up oil prices and tariff-induced price increases, this has completely shattered market hopes for cooling inflation. This above-expected data has forced a sharp rise in expectations for Fed rate hikes, with financial markets already betting on rate increases starting as early as September and potentially continuing thereafter. This means that loose liquidity will tighten at an accelerated pace, which will not only significantly increase corporate financing costs and suppress consumer spending, but could also directly puncture the current asset bubble, dealing a heavy blow to stocks and risk assets, casting a dark cloud over the prospects for global economic recovery.