April’s inflation data is landing a lot like a brick through a window. Per the Consumer Price Index (CPI) data published May 12, prices rose 3.8% year over year, driven by a 17.9% surge in energy costs from the U.S.-Iran conflict, which is blocking oil shipments through the Strait of Hormuz. The official reading for core inflation, which strips out food and energy from the comprehensive inflation data, climbed to 2.8%, a bit above expectations.
These figures are, broadly speaking, bearish for the crypto sector, but Bitcoin (BTC +0.40%), Ethereum (ETH 0.55%), and Solana (SOL 0.94%) will each face the consequences somewhat differently, so let’s dig in and analyze the situation.
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