Analysis: U.S. inflation exceeds expectations, dampening rate cut hopes; Bitcoin retreats, crypto market under pressure

Odaily Odaily reports that the latest U.S. inflation data came in higher than expected, weakening the market's expectations for the Federal Reserve to cut interest rates this year and triggering a broad pullback in risk assets. Following the data release, the market now expects the Fed to keep the federal funds rate at 3.50%–3.75% at its June 17 meeting, possibly maintaining that level through the end of the year.

Influenced by the data, Bitcoin fell in the short term, trading around $80,700–$80,814, with a 24-hour decline of approximately 1.2%. U.S. stock index futures also weakened, while the yield on the 10-year U.S. Treasury note rose to 4.44%. Among commodities, WTI crude oil climbed about 3% to $101 per barrel, further fueling concerns over persistent inflation.

Analysts point out that against the backdrop of higher-than-expected inflation and strengthening energy prices, short-term market risk appetite has been suppressed. Both crypto assets and equity markets are facing repricing pressure. (CoinDesk)