President Trump Loves Inflation, and Bitcoin Could Feel the Impact
US President Donald Trump advised reporters he “loves” inflation on Wednesday after authorities knowledge confirmed shopper costs rising at the quickest annual tempo in three years. The Consumer Price Index (CPI) climbed 4.2% from a yr earlier.
The studying lands one week earlier than the Federal Reserve’s June coverage assembly below new Chair Kevin Warsh. Traders now lean towards fee hikes quite than cuts, which may strain danger property like Bitcoin (BTC).
Energy Prices Push US Inflation to a 3-Year High
Inflation rose 0.5% in May after a 0.6% leap in April, the Bureau of Labor Statistics reported. Energy drove most of the enhance, climbing 3.9% after a 3.8% rise the prior month.
Gasoline now averages $4.15 per gallon, based on AAA. That compares with a median of $2.98 when the US and Israel first struck Iran on February 28. Meanwhile, actual wages fell 0.1% in May, marking a second straight month of declines.
When requested about the newest inflation numbers, Trump embraced them.
“The numbers have been nice…I like the inflation,” he stated.
Trump went on to acknowledge a covert effort to route millions of barrels of oil by the Strait of Hormuz. The president predicted oil would “come down like a rock” as soon as the struggle ends. He beforehand insisted that blocking Iran’s path to a nuclear weapon is the “only thing” he considers.
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Bitcoin Faces Pressure as Rate Hike Odds Climb
Persistent inflation complicates Trump’s repeated requires decrease borrowing prices. CME FedWatch reveals a 98.4% likelihood the Fed holds at 3.5%–3.75% subsequent week. However, markets now value greater than 70% odds of a fee hike by the finish of 2026.
That shift issues for Bitcoin. Higher charges usually strengthen the greenback and Treasury yields, drawing capital away from non-yielding property.
BTC trades close to $62,000, down nearly 24% over the previous 30 days, based on BeInCrypto Markets. The token now sits roughly 51% beneath its all-time high of over $126,000. A 1% bounce over the previous day has achieved little to restore the broader downtrend.
Warsh inherits a Fed dealing with accelerating costs and softening real incomes. If subsequent week’s assembly alerts tightening forward, Bitcoin’s macro headwinds may strengthen into the summer season.
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