ChainCatcher report: U.S. April CPI data hit a three-year high, sparking market concerns over a potential Fed rate hike, pressuring both U.S. equities and bond markets, while Bitcoin demonstrated relative resilience. Data showed that U.S. core CPI rose 0.4% month-over-month, exceeding the market expectation of 0.3%, and climbed to 2.8% year-over-year; the overall CPI, including energy prices, increased 3.8% year-over-year, up from 3.3% previously, marking the highest inflation level since May 2023. In response, markets quickly adjusted their expectations for the Fed’s policy path. CME FedWatch data indicates that traders now assign over a 35% probability to at least one rate hike within 2026, whereas just weeks ago, the dominant market expectation was for rate cuts this year. Risk assets subsequently declined, with the Nasdaq index dropping over 1.3% and U.S. bond yields rising in tandem. However, the crypto market showed some resilience: Bitcoin remained above $80,000 after the data release, trading at approximately $80,500—essentially flat over 24 hours—while Ethereum and XRP fell around 2.5%.
U.S. April CPI Exceeds Expectations, Bitcoin Holds Above $80,000
ChaincatcherShare
Summary
Bitcoin news emerged as U.S. April CPI data hit a three-year high, fueling speculation over a potential Federal Reserve rate hike. Core CPI rose 0.4% month-over-month, exceeding the expected 0.3%, while the year-over-year increase reached 2.8%. Overall CPI climbed 3.8% year-over-year, the highest since May 2023. Despite market unease, Bitcoin analysis shows the asset held above $80,000, trading near $80,500. Stocks and bonds declined, with the Nasdaq down over 1.3%. Ethereum and XRP fell approximately 2.5%.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.