New York Fed's May Consumer Expectation Survey reveals dwindling concerns over tariff-induced price inflation among Americans.
Bitcoin Soars Above $108K Amid Easing Tariff Tensions
As worries over Trump-era tariffs subside, Americans are becoming less anxious about rising oil prices. The monthly Consumer Expectation Survey released by the New York Federal Reserve on Monday indicated declining inflation expectations across all three measured timeframes.
The stock market rallied on the news, and Bitcoin regained momentum, breaking the $108,000 threshold after a week of stagnation. The survey evaluates consumers' inflation expectations over one-, three-, and five-year periods. Sentiment about overall price increases dropped by 0.4%, 0.2%, and 0.1%, respectively. Notably, food prices were the only inflation indicator Americans expected to rise in the three-year outlook. Respondents anticipated a 0.4% increase in grocery bills within three years, rising from 5.1% to 5.5%.
Other areas measured by the survey included a 0.2% expected rise in income and a reduced likelihood of unemployment climbing to 3.3%. In simpler terms, compared to April, Americans broadly expect lower prices (except for groceries), higher income, and more job opportunities over the next one to five years—a wave of optimism reflected in both cryptocurrency and stock markets today.
(Data sourced from the May 2025 New York Fed Consumer Expectation Survey shows declining inflation expectations across all three timeframes / New York Federal Reserve Bank)
"While tariff revenues are increasing, inflation is declining—contrary to what others claim, but entirely consistent with what we've been saying all along," National Economic Council Director Kevin Hassett stated during a Monday CNBC interview.
Market Indicators at a Glance
- Bitcoin (BTC): Hit a new weekly high on Monday, rising 1.70% over the past 24 hours to trade at $108,140.92 at press time. This upward movement marked a 3.53% weekly gain, with prices ranging between $105,400.23 and $108,162.26 within a day.
- Trading Volume: Surged to $48 billion, up over 29% from the previous day, though primarily due to typical post-weekend momentum.
- Market Capitalization: The crypto market cap climbed to $2.14 trillion (+1.77%), while BTC's dominance strengthened to 64.68%, cementing its lead over altcoins.
- Futures Market: BTC's total open interest jumped 4.94% to $76.27 billion, signaling trader readiness for sustained upward movement. Derivatives data from Coinglass revealed $6.55 million in total liquidations over 24 hours—overwhelmingly from short positions ($6.53 million versus $13,100 in long liquidations). Clearly, shorts misjudged the momentum.
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FAQs
Q: Why did Bitcoin surge past $108,000?
A: Reduced concerns over tariffs and positive inflation expectations fueled investor optimism, driving demand for BTC.
Q: What’s the significance of BTC’s dominance rising to 64.68%?
A: It indicates stronger investor confidence in Bitcoin compared to altcoins, often seen during bullish market phases.
Q: How does open interest reflect market sentiment?
A: Rising open interest suggests new money entering futures markets, typically aligning with continued price trends.
Q: Are short liquidations a bullish sign?
A: Yes. Large short liquidations force traders to buy back BTC, amplifying upward price pressure.