Inflation reached a record high of 3.8% year-on-year in April, the highest reading since 2023, according to the US Consumer Price Index (CPI). An official press release from the US Bureau of Labor Statistics (BLS) revealed that the energy index jumped 3.8% in April, making up more than 40% of the monthly all items rise.
The US-Iran conflict and the oil supply pressure continued to have an effect on energy costs, as the 12-month rise in energy was about 18%. As risk assets encountered new challenges, data from TradingView revealed that the price of Bitcoin was hovering under $81,000.
Rising Inflation Concerns
The announcement went on to say that April saw a decline in a number of significant indices, including those for new automobiles, communication, and healthcare. Responding, exchanging the likelihood of the Federal Reserve shifting its focus to interest rate rises was highlighted in the Kobeissi Letter.
It noted in an X post that we are now seeing inflation levels not seen since the epidemic, due to rising gasoline costs. Expectations centered on current rates being unchanged throughout 2026 and next year, according to the most recent data from CME Group’s FedWatch Tool.
Due to the predicted reduced liquidity entering the market, crypto and risk assets often experience negative pressure when rate rises resume. Meanwhile, Bitcoin traders have reaffirmed the boundaries that bulls should aim to defend in the near future.
Despite a little dip from its recent highs, private wealth management Swissblock claims Bitcoin is continuing its upward pace. In a recent bounce, Bitcoin’s price momentum was revived and pushed back into full growth area, according to Swissblock.
Bitcoin is now settling into a cost-basis consolidation phase, with support coming from the genuine market mean and the short-term holding cost basis at about $80,000 and resistance coming from the active realized price near $85,000.