Bitcoin stays stuck near $77,000 as U.S. sentiment slips and inflation expectations climb

Bitcoin traded in a tight band around $77,000 during early U.S. equity hours Friday, extending the sideways pattern seen since the start of the week, according to CoinMarketCap. Fresh U.S. data failed to jolt crypto markets. The University of Michigan's consumer sentiment index for May fell to 44.8, down from 48.2 and below the 48.2 consensus. The expectations component slid to 44.1, a new low. Investors focused more on inflation expectations moving higher. The one-year inflation expectation rose to 4.8% from 4.5%, while the five-year measure climbed to 3.9% from 3.4%. The figures reinforced concerns about softer U.S. growth alongside renewed inflation pressure, prompting a repricing of the rate outlook. Interest-rate markets now imply a more than 70% probability that the Federal Reserve will deliver at least one additional rate hike before the end of 2026, signaling expectations have not shifted decisively toward easing. The report also pointed to the war in Iran pushing oil prices higher, adding to inflation risks that had previously cooled. In that setting, Kevin Warsh, expected to become the next Fed chair, would inherit a difficult policy backdrop. Risk assets held up in early trading. The Nasdaq added 0.3% and the S&P 500 gained 0.4%. Bitcoin continued to hover near $77,000, suggesting traders are waiting for clearer signals tied to upcoming Fed leadership changes and the policy path that follows.