📊 CPI Shock Rattles Wall Street & Crypto — Volatility Ahead?
The latest U.S. Supercore CPI — tracking service sector inflation excluding housing and energy — jumped unexpectedly, signaling persistent inflation pressures.
Both monthly and yearly readings rose, increasing the likelihood of the Federal Reserve keeping interest rates elevated for longer, or even hiking again.
Higher rates weigh on risk assets by making borrowing costlier and shifting investor preference toward safer, yield-bearing instruments — a headwind for crypto in the short term. This could spark price swings and slow momentum across major tokens.
However, if markets interpret the jump as temporary and the Fed adopts a patient stance, digital assets may rebound later this year when rate cuts become more likely. Inflation trends over the coming months will heavily shape rate expectations and capital flows into crypto.
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