Bitcoin faces an inflation warning beneath steady US consumer sentiment
A University of Michigan study finds US consumers’ long-run inflation expectations remain above comparable 2019 and 2024 levels. In October, year-ahead expectations rose to 4.7% and long-run expectations to 3.5%, while sentiment was nearly unchanged. Survey director Joanne Hsu says tariff and energy-price shocks may have contributed, though any inflationary effect from consumers bringing purchases forward remains unmeasured. Persistently high expectations could limit Federal Reserve rate cuts, potentially weighing on Bitcoin by reducing risk appetite. However, Fed participants said in September that longer-term expectations remained consistent with the 2% inflation goal, and the cited crypto-market link is based on an IMF study of past monetary tightening.
