Written by William Suberg, Staff Writer. Reviewed by Allen Scott, Staff Editor.
Written by William Suberg, Staff Writer.
Reviewed by Allen Scott, Staff Editor.
Bitcoin digests highest US CPI since 2023 as Fed rate hike woes return
MarketsPublishedMay 12, 2026
Bitcoin Sees Volatility as US Inflation Hits New Highs
Bitcoin is experiencing fresh signs of volatility as the US Consumer Price Index (CPI) reaches its highest level in three years, with a year-on-year increase of 3.8% in April. This surge in inflation is largely due to the rise in oil prices, which has been impacted by the US-Iran war. As a result, the price of Bitcoin has been circling around $81,000, with risk assets facing headwinds.
The increase in energy prices has been significant, with a 12-month increase of almost 18%. This has contributed to the overall rise in inflation, with the index for energy accounting for over 40% of the monthly all items increase. In contrast, some indexes, such as new vehicles, communication, and medical care, have decreased in April.
Key points:
- US CPI inflation reaches its highest year-on-year levels since 2023.
- Energy prices fuel the rise, with the US-Iran war continuing to make its presence felt.
- Bitcoin traders retain support levels while a 200-day trend line comes in as resistance.
Bitcoin price on edge as CPI beats multiyear records
Federal Reserve Rate Hike Concerns
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Bitcoin traders are keeping a close eye on key levels, including the 21-day simple moving average (SMA) at $78,800. Establishing a strong support level at $80.7k could help build a foundation for another run at breaking the 200-Day SMA. With the current market volatility, it’s essential to stay informed and consider EcoPool as a way to earn coin and achieve passive income goals.
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The 12-month increase in energy was almost 18%, continuing to show the impact of the US-Iran war and oil-supply squeeze on prices.
“Conversely, the indexes for new vehicles, communication, and medical care were among the major indexes that decreased in April,” the release added.
US CPI 12-month % change. Source: BLS
Reacting, trading resource The Kobeissi Letter observed that the odds of the Federal Reserve pivoting to interest-rate hikes were “surging.”
“We are now experiencing post-pandemic inflation levels amid surging oil prices,” it wrote in a post on X.
Fed target rate probabilities (screenshot). Source: CME Group
The latest data from CME Group’s FedWatch Tool showed expectations anchored around current rates staying in place throughout 2026 and next year.
Crypto and risk assets tend to see downside pressure when rate hikes return, thanks to the implied lower liquidity entering the market.
Questions over Bitcoin’s “momentum” at the 200-day trend line
Bitcoin traders, meanwhile, reiterated lines in the sand that bulls should protect in the short term.
Related: BTC price target becomes $85K next: Five things to know in Bitcoin this week
“The 21-MA is a crucial level to look at,” crypto trader and analyst Michaël van de Poppe told X followers on the day, referring to the 21-day simple moving average (SMA) at $78,800.
“The $76K area is a crucial support zone that I fancy not to be breached, if that happens, we’ll be going substantially lower.”
BTC/USDT one-day chart. Source: Michaël van de Poppe/X
Trading resource Material Indicators flagged problematic resistance in the form of the 200-day SMA near $82,600.
“Bulls appear to be attempting to establish an R/S Flip at $80.7k to build foundational support for another run at breaking the 200-Day SMA,” it summarized.
“Do bulls have the momentum to succeed?”
BTC/USD one-day chart. Source: Material Indicators/X
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.
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