Bitcoin Under Pressure, CPI and Iran Lead the Way
Bitcoin weakened on Tuesday (May 12), with the crypto market holding within a narrow range as fading hopes for a US-Iran peace deal and hotter-than-expected US inflation data dampened risk appetite. At 11:28 p.m. WIB (Western Indonesian Time), Bitcoin was at US$80,253, down 1.84%.
The pressure arose after reports suggested US President Donald Trump was considering additional military options against Iran, although this week's decision was not seen as leading to immediate action. Trump also stated that the ceasefire was "on life support" and was considering resuming operations to restore commercial shipping in the Strait of Hormuz, keeping the market sensitive to geopolitical risks.
On the macro front, US inflation in April was higher than expected, reinforcing the narrative of higher interest rates for longer. The headline CPI rose 3.8% year-on-year (vs. the 3.7% forecast) and the core CPI strengthened, raising caution around speculative assets like crypto, especially if the market further reduces the likelihood of policy easing in 2026.
Risk sentiment is also overshadowed by this week's US-China summit amidst strained relations, which has weighed on risk assets more broadly. The weakening trend in Asian stock markets and falling Wall Street futures reflect this defensive stance.
In other major crypto markets, Ether weakened to US$2,266.94 at 11:28 p.m. WIB, down 3.03%, while altcoin movements were said to be volatile amid market caution. (arl)
Source: Newsmaker.id
