Bitcoin seeks new ATH as US inflation rises

As expected, US inflation rose to 2.4%, making it unlikely that the Federal Reserve will wait much longer to cut long-term interest rates. This proved to be good news for Bitcoin, which was trading close to a new record. At the time of writing, the largest digital currency is trading at $108,000.

Pauze

With that new record, the alarm phase of early April 2025 seems long behind us. At that time, Bitcoin fell back to $75,000 because US President Donald Trump announced import tariffs against most countries in the world. Except for China, all those tariffs have now been paused, which has provided a lot of respite on both the stock and crypto exchanges.

The fact that more and more companies are buying Bitcoin also benefits the largest cryptocurrency.

Inflation

Analysts expect US inflation to continue to rise over the summer, largely due to the import tariffs announced by Donald Trump earlier this year. This will virtually force Federal Reserve Chairman Jerome Powell to cut interest rates, even though he doesn’t really seem to want to.

That’s good news for Bitcoin, which could get a boost in the summer months from both a falling dollar and lower interest rates.