Tuesday's sudden sell-off
The drop was swift. Within minutes of the CPI release at 8:30 a.m. Eastern, bitcoin plunged from around $82,000 to below $80,000. Trading volumes spiked as stop-losses were triggered. By noon, it had recovered to roughly $80,400, but the mood was sour. The broader crypto market also took a hit, with ether and most altcoins sliding 2% to 4%.
Inflation dashes rate cut hopes
The Bureau of Labor Statistics reported that the consumer price index rose 3.8% year-over-year in April, above the 3.6% economists had expected. Core inflation also exceeded forecasts. The data effectively killed any remaining chance of a Federal Reserve rate cut at the June meeting. For bitcoin, which has rallied this year partly on expectations of looser monetary policy, the report was a clear negative. Higher-for-longer rates typically drain liquidity from risk assets like crypto. The data also pushed bond yields higher and the US dollar stronger, both headwinds for bitcoin.
Trump's warning on the Iran ceasefire
As if the inflation news wasn't enough, President Trump issued a statement warning that the US would not accept violations of the ceasefire with Iran. The warning came amid reports
