The May consumer expectations survey from the New York Federal Reserve shows that Americans are becoming less concerned about inflation caused by tariffs.
With Tariff Tensions Easing, Bitcoin Surges Past $108,000
Americans are becoming less worried about high gas prices as concerns over the Trump administration's tariffs subside. The New York Federal Reserve released its monthly Consumer Expectations Survey on Monday, showing a decrease in inflation expectations across all three time horizons measured by the survey.
The stock market surged after the news, and Bitcoin regained momentum, surpassing the $108,000 threshold after a week of stagnation. The survey assesses consumer inflation expectations over one, three, and five years.
Sentiment around the overall price increase decreased by 0.4%, 0.2%, and 0.1%, respectively. Interestingly, expectations for food prices over the next three years are the only inflation indicators that Americans expect to rise. Respondents predict grocery bills will increase by 0.4% over three years, from 5.1% to 5.5%.
Other surveyed sectors measured include income growth expectations increasing by 0.2% and higher unemployment prospects decreasing by 3.3%. In other words, compared to April, Americans generally expect lower prices (except for groceries), higher wages, and more jobs in the next one to five years, and that optimism has been reflected today in both the cryptocurrency and stock markets.
Kevin Hasset, director of the National Economic Council, said in an interview with CNBC on Monday: "While tariff revenues are increasing, inflation is decreasing, which contradicts the narrative that people are still telling, but it is very much in line with what we have been saying."
Market Data Overview
Bitcoin ( BTC ) has reached a new high this week on Monday, rising 1.70% in the past 24 hours to trade at $108,140.92 at the time of reporting. The price action, which has pushed BTC up 3.53% over the past week, occurred within a 24-hour range from $105,400.23 to $108,162.26.
Trading volume surged to $48 billion, up more than 29% from yesterday, but mainly due to the price spike following the typical weekend rise. The market capitalization of cryptocurrencies rose to $2.14 trillion, an increase of 1.77%, while BTC dominance rose to 64.68%, solidifying Bitcoin's leading position against altcoins.
Market enthusiasm for futures has also increased, with total open BTC contracts rising 4.94% to $76.27 billion. Meanwhile, derivatives data from Coinglass shows a total of $6.55 million in liquidations over the past 24 hours, mainly from short positions. Approximately $6.53 million in shorts were wiped out against $13,100 in long liquidations. Clearly, the short sellers miscalculated the momentum.