Analysis: US inflation surpasses expectations, dampening rate cut outlook; Bitcoin retreats and the crypto market faces pressure

Odaily reported that the latest US inflation data rose above expectations, weakening the market's forecast for a Federal Reserve rate cut this year and triggering a broad pullback in risk assets. After the data release, the market now expects the Federal Reserve to keep interest rates in the 3.50%–3.75% range at its June 17 meeting, and possibly maintain this level until the end of the year.

Influenced by the data, Bitcoin saw a short-term drop, trading around $80,700–$80,814, with a 24-hour decline of approximately 1.2%. US stock index futures also weakened, and the yield on the US 10-year Treasury note rose to 4.44%. In commodities, WTI crude oil increased by about 3% to $101, further heightening concerns over persistent inflation in the market.

Analysts pointed out that, with inflation exceeding expectations and energy prices strengthening, short-term market risk appetite is being suppressed, placing renewed repricing pressure on both crypto assets and equity markets. (CoinDesk)