Analysts tip pressure for Bitcoin, gold as US inflation tops 4%
US inflation rose 4.2% in May, reducing hopes for near-term Fed rate cuts and putting pressure on Bitcoin, gold, and other risk assets. Analysts said the CPI print keeps the Fed cautious and data-dependent, limiting liquidity expectations and offering little immediate support for Bitcoin. Bitcoin is already down 36% since January, while gold has fallen 23% from its peak. Higher real yields also weigh on gold because it offers no yield. Some analysts see no strong basis for Wall Street to rotate into Bitcoin yet, saying investors want clearer evidence that inflation is sustainably easing. Geopolitical tensions and possible oil supply disruptions could add more inflation pressure this summer. Overall, risk appetite is likely to improve only if inflation falls enough to reopen the door to rate cuts and easier financial conditions.
