Market analysts have warned that Bitcoin and gold could face further headwinds this year after the US Consumer Price Index (CPI) rose by an annualized 4.2% in May, according to figures released on Wednesday.
A rise in the consumer price index, a broad measure of the cost of goods and services across the U.S. economy, has dampened hopes that the central bank will cut interest rates, with some analysts now saying interest rate hike Later this year — bad news for risky assets like cryptocurrencies.
US inflation rate rises to the highest level in three years. sauce: trade economics
Bitcoin has already experienced a difficult period in the first half of this year. Bitcoin prices have fallen 36% since January, and gold has fallen 23% from its January high. At the same time, oil prices soared by more than 50% over the same period.
“Institutional investors will want to see further evidence of sustained declines in inflation before increasing their exposure. At the same time, the escalating conflict over Iran is creating further uncertainty, especially given the ongoing risk of oil supply disruption.”
Thielen predicted that these disruptions could become “more pronounced” over the summer, putting “new upward pressure on inflation expectations.”
He said Bitcoin “remains vulnerable”. less than $60,000 That seems “increasingly likely” in the coming days.
Prices have not changed since December 2025. source: trade economics
Risk appetite returns only if inflation declines
Tim Sun, a senior researcher at Hashkey Group, said that while expectations for rate hikes are “heating up,” it is “relatively unlikely” that the Fed will raise rates this year.
“Only if inflation declines, interest rate cuts become realistic, and liquidity improves as the cost of capital falls will there be a true reversal in overall risk appetite.”
CME futures predict There is a 98.4% probability that there will be no interest rate changes at the next Fed meeting on June 17th.
