US Inflation Data Spikes, Putting Pressure on Cryptocurrencies

The latest inflation data from the US has sent shockwaves through the market, with the April CPI rising to 3.8%, exceeding expectations and marking the highest level since May 2023.

The unexpected rise in inflation has reinforced the Federal Reserve's long-term high interest rate expectations, putting pressure on cryptocurrencies and risk assets.

Meanwhile, the US Senate Banking Committee released an updated draft of the CLARITY Act, aimed at advancing crypto regulatory frameworks. However, the bill faces opposition from unions and major banks, leaving market sentiment swinging between regulatory positives and macro pressures.