Bitcoin flat following disappointing inflation data
Core consumer prices — which would have stripped out what everyone already knew were surging energy costs — rose 0.4% in April, double March's 0.2% pace and higher than 0.3% expected by economists.
On a year-over-year basis, core CPI rose 2.8% versus 2.6% in March and 2.7% forecast.
Headline CPI — which does include energy costs — was higher by 3.8% in April versus just 3.3% in March and 3,7% expected. That 3.8% was the fastest pace of inflation since May 2023.
The data has market participants quickly pricing in Federal Reserve rate hikes — a massive change from weeks ago, when the question was how often the Fed would be cutting rates in 2026.
According to CME FedWatch, markets are seeing more than a 35% chance of one or more rate hikes this year.
The news has helped send stocks lower, led by the Nasdaq's 1.3% decline.
Bitcoin (BTC), though, has been holding steady, currently trading at $80,500, roughly flat over the past 24 hours. Major altcoins like ether (ETH) and XRP (XRP) are down closer to 2.5%.