Analysis: Rising inflation is suppressing expectations of interest rate cuts, putting temporary pressure on Bitcoin.

CoinFeed reported on May 15th that, according to BIT analysis, if Bitcoin had kept pace with the Nasdaq's rise, its current price should be close to $140,000. Bitcoin's relative underperformance may be related to the resurgence of inflation since the third quarter of 2025. Overall, Bitcoin had previously largely followed the Nasdaq's fluctuations, but since October 2025, the divergence between the two has widened significantly. At that time, the latest CPI reading had risen to 3.0%, 100 basis points above the Federal Reserve's target, and the interest rate market began to gradually withdraw some of its pricing in a 2026 rate cut. This is precisely the source of Bitcoin's real pressure; Bitcoin's upward momentum relies on expectations of Fed easing, and once the market begins to revert to pricing in rate cuts, its performance often comes under pressure. This logic has continued to influence Bitcoin's price movements since then. Stocks, on the other hand, are quite different.