The US stock market and global crypto market are facing renewed selling pressure as Wall Street anticipates hotter-than-expected U.S. CPI inflation data today. JPMorgan, Morgan Stanley, Citigroup, and other major banks warn that a higher inflation reading could reinforce a “higher for longer” Fed rate environment, weighing on Bitcoin, Ethereum (ETH), and XRP.
US CPI Inflation Estimates by JPMorgan & Other Wall Street Giants
After the Nonfarm payrolls data showed a resilient US labor market, investors are closely monitoring the US CPI inflation data release later today. An upside surprise in inflation could erase hopes of Fed rate cuts, sending Bitcoin, ETH, and XRP crashing.
Wall Street giants JPMorgan, Morgan Stanley, Deutsche Bank, Citigroup, UBS, and Wells Fargo expect CPI inflation to come in hot at 3.8%. The core CPI is expected to rise amid elevated oil prices as US-Iran peace talks stalled, with President Trump considering military options.
Wall Street Estimates on US CPI inflation. Source: Nick TimiraosThe Wall Street Journal’s Nick Timiraos said “Forecasters expect a higher core CPI reading in April owing partly to how the BLS made an assumption during the government shutdown’s data blackout that lowered shelter inflation. That quirk goes the other way now.”
Notably, Wall Street banks are also delaying their Fed rate cut expectations. Bank of America now expects the Fed to cut interest rates in mid-2027, shifting its previous forecast of a potential rate cut in late 2026. The bank cited hawkish Fed tone, sticky inflation, and elevated oil prices as reasons, with a strong US labor market also weakening the urgency for cuts.
Bitcoin, ETH, and XRP Prices Plunge
Prices of the top three crypto assets Bitcoin, ETH, and XRP are falling ahead of the April US CPI inflation release by the U.S. Bureau of Labor Statistics. This happened despite the US Senate finally releasing the CLARITY Act draft today.
Economists estimate annual headline CPI inflation jumped to 3.7%, hitting a two-year high. This is even significantly higher from 3.3% CPI inflation in March. However, inflation is expected to have eased to 0.6% month-over-month (MoM) from the 0.9% rise recorded last month.
Meanwhile, core CPI is projected at 0.3% MoM, higher than 0.2% previously. The annual core inflation, which excludes food and energy, is expected at 2.7%, a rise from 2.6% in February. This could cause Bitcoin price to fall, triggering a broader crypto market selloff.
Amid multiple macro and technical headwinds, Bitcoin, ETH, and XRP prices could tumble. As CoinGape reported, Fed rate cut odds fell after the US Senate advanced Fed Chair nominee Kevin Warsh to a final vote. Bitcoin is trading near $80,600 at press time, with Coinglass revealing a massive sell wall resisting an upside move.
Meanwhile, analyst Ted Pillows pointed out that ETH/BTC has lost its support zone on the daily chart. He said the technical patterns are not looking good for Ethereum and altcoins. The price is down more than 2% to $2,283.
ETH/BTC Daily Chart. Source: Ted PillowsOn the other hand, XRP plunged 0.50% to $1.44 over the past 24 hours amid fresh headwinds in the crypto market. Trading volume tanked more than 32%, traders anticipating selling risks despite whale and institutional buying.
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Source: https://coingape.com/bitcoin-eth-xrp-risks-falling-as-jpmorgan-wall-street-giants-see-hot-cpi-inflation-at-3-8/
