New Study Forecasts Rising U.S. Inflation, Pressuring Bitcoin (BTC) and Crypto Markets

A recent economic research report projects a potential resurgence of inflation in the United States, posing a significant challenge to the prevailing market sentiment among Bitcoin (BTC) investors. Many crypto bulls have built their investment thesis on the expectation of sustained disinflation, which typically enhances the appeal of non-yielding assets like Bitcoin as a hedge against currency devaluation. The new analysis suggests that persistent structural pressures in the economy could reignite inflationary forces. This scenario may lead to a more aggressive monetary policy stance from the Federal Reserve, including maintaining higher interest rates for longer. Such an environment traditionally strengthens the U.S. dollar and dampens enthusiasm for risk assets, including cryptocurrencies. Consequently, the research directly contests the optimistic "disinflation bet" that has been a key driver behind recent bullish momentum in the Bitcoin and broader digital asset market.