US inflation hits 3.8% in April, crypto markets react

US inflation hit 3.8% in April 2026, the highest since May 2023, driven by energy prices. The data pressured financial markets and crypto, with Bitcoin volatile but steady near $81,000.

US inflation accelerated to 3.8% in April 2026, reaching its highest annual rate since May 2023. This surge surpassed expectations and was largely fueled by rising energy prices amid ongoing geopolitical tensions, particularly the US-Iran conflict. Energy costs soared 3.8% in April, accounting for over 40% of the monthly CPI increase. Gasoline prices jumped 5.4% for the month and 28.4% year-over-year. Food prices also rose, especially for fresh fruits and vegetables, while shelter costs increased by 0.6%, maintaining upward pressure on overall inflation. The higher-than-expected inflation figures have raised concerns that the Federal Reserve may delay interest rate cuts. This uncertainty impacted financial markets, causing declines in cryptocurrencies such as Bitcoin, XRP, and ADA. Bitcoin experienced volatility around the $81,000 level but remained relatively stable. Analysts warn that persistent inflation could force the Fed to keep rates higher for longer, increasing recession risks and affecting both traditional and crypto markets.