Bitcoin Holds $77K as Record-Low Consumer Sentiment and Surging Inflation Expectations Greet New Fed Chair Warsh!

Bitcoin is stuck in a tight range near $77,000 as a fresh wave of stagflationary data lands on the morning Kevin Warsh is officially sworn in as Federal Reserve chairman. The University of Michigan's Consumer Sentiment Index for May collapsed to a record low 44.8, well below the 48.2 forecast, while the Expectations Index hit its own record low of 44.1.

Inflation expectations are moving in the wrong direction too. The UMich 1-year inflation gauge jumped to 4.8% from 4.5%, and the 5-year measure surged to 3.9% from 3.4% — a meaningful shift that complicates any near-term rate-cut narrative. Rate traders are now pricing more than a 70% probability of one or more rate hikes by end of 2026.

Warsh was appointed by President Trump with an implicit mandate to ease monetary policy, but the Iran war has sent oil prices higher and reignited inflationary pressures that had been cooling.