BlackRock Warns of Energy Shock as May CPI Could Intensify Bearish Pressure on Bitcoin

BlackRock said U.S. inflation remains above the Federal Reserve’s target, potentially keeping interest rates higher for longer and dampening risk appetite. Crypto assets such as Bitcoin are sensitive to changes in rates and liquidity. If conflict in the Middle East drives up energy prices, higher transportation and production costs could also create a fresh wave of inflationary pressure.

Markets are watching the U.S. consumer price index (CPI) for May, with BlackRock expecting inflation to accelerate to 4.2%, well above the Fed’s 2% target. A reading at or above that forecast could delay interest-rate cuts and intensify bearish pressure on Bitcoin. Disruptions to energy supplies remain a key variable for the economic outlook.