A stronger-than-expected US inflation report released on May 12, 2026, rattled financial markets, boosting the dollar and sending cryptocurrencies lower as traders rushed to reduce risk exposure.
Responding to CPI, Bitcoin fell from nearly $82K to $80.2K. But crypto is also reacting to other macro factors. The US-Iran tensions continue to weigh heavily on Bitcoin and altcoin movements. Meanwhile, investors are holding their breath for the upcoming Trump-Xi meeting.
Crypto Market Under Pressure
The Consumer Price Index, which measures changes in the price of a broad basket of goods and services, rose 3.8% year-over-year, beating the 3.7% consensus forecast and marking the highest reading since May 2023.
The Bureau of Labor Statistics report delivered a mixed but broadly hawkish picture. On a monthly basis, headline inflation matched estimates at 0.6%, and core CPI rose 0.3%. However, the annual figures dominated market reaction.
Post-release, the US dollar's surge added further pressure. Because Bitcoin and most cryptocurrencies are priced in dollars, a stronger USD reduces their relative appeal to global investors.
Read More: Strategy Buys 535 More Bitcoin as BTC USD Holds $81K | Crypto Watch Desk
Strategy Buys 535 More Bitcoin as BTC USD Holds $81K
Strategy Head Michael Saylor announced the acquisition of 535 Bitcoin for approximately $43 million at an average price of $80,340 per Bitcoin, increasing total holdings to 818,869 BTC.
In an announcement on X, Saylor wrote that the purchase was "funded primarily by sales of MSTR and STRC stock. The company's total holdings now stand at 818,869 BTC, acquired for approximately $61.86 billion."
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