The May readout of the Consumer Price Index (CPI) landed hot at 4.2% on June 10, marking a three-year high. Now, Federal Reserve policy talk has flipped from the possibility of rate cuts to the increasing probability of rate hikes in the near term, and there may be more energy price inflation on the way thanks to the ongoing conflict with Iran. At the same time, the Crypto Fear and Greed Index, a barometer of crypto market sentiment, reads 21, a level denoting extreme fear, and Bitcoin (CRYPTO: BTC), the sector leader, is down 20% in the last 30 days alone.

This is not at all what a good macro backdrop for crypto looks like. Here’s why.

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