Following the release of the latest US inflation report on May 12th, investors are increasingly focused on Bitcoin. With US consumer prices rising, there’s growing concern about how this will impact Bitcoin and its ability to maintain its value. This situation also presents challenges for the entire cryptocurrency market, as Bitcoin’s price tends to react quickly to changes in the overall economy.
Bitcoin Holds Ground Amid Rising US Inflation
As a researcher, I’ve been tracking inflation, and the latest data from the US Bureau of Labor Statistics shows a concerning trend. In April, the Consumer Price Index (CPI) increased by 3.8% over the year – the highest rate we’ve seen since May 2023. This indicates a significant rise in the cost of goods and services.
Usually, when inflation goes up, the Federal Reserve raises interest rates. This makes riskier investments like Bitcoin less appealing because safer options like bonds offer better returns. However, even with the recent rise in inflation, Bitcoin’s price only fell slightly – about 1 to 1.5 percent to around $80,500 – before settling around $81,000. Over the past day, its price change was minimal, at just 0.1 percent.
Rising inflation was largely driven by a surge in energy prices connected to the conflict between the US and Iran. This pushed monthly inflation up by 0.6%, as many experts had anticipated. The yearly inflation rate also exceeded expectations, going beyond the predicted 3.7%. Before the late February military actions involving Iran, annual inflation was significantly lower, at just 2.4%.
The yield on 10-year US Treasury bonds increased by over 0.04% to reach 4.459%. At the same time, US Bitcoin ETFs experienced a combined outflow of more than $233 million on May 12, suggesting investors are selling Bitcoin.
Even with recent challenges, Bitcoin’s price didn’t fall much, even though interest in Bitcoin ETFs decreased. Its position as the leading cryptocurrency remained stable, and it showed signs of potentially increasing in value again. This indicates that some investors still view Bitcoin as a way to protect against inflation, particularly as they become more cautious with other investments.
Kiyosaki Urges Buying BTC As Inflation Rises
Robert Kiyosaki, the author of *Rich Dad Poor Dad* and a well-known financial expert, is advising investors to buy Bitcoin as a way to protect themselves from rising inflation. In a recent post on X (formerly Twitter), Kiyosaki explained that the ongoing conflict in Iran is likely to drive up oil prices, which will worsen inflation in the US. He believes this could significantly devalue the dollar and reduce the ability of average Americans to afford everyday goods.
Kiyosaki recently cautioned that the growing US national debt – currently around $34 trillion – is pushing the government to print more money, which worsens inflation. Given these overlapping problems, he’s advising people to safeguard their finances and well-being. He recommends investing in assets like gold, silver, Bitcoin, and Ethereum to maintain or increase their ability to buy things.
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2026-05-16 04:00