Market strategists said Bitcoin and gold could remain under pressure after US consumer prices rose 4.2% year over year in May, a reading that reinforced the Federal Reserve’s cautious stance on interest-rate cuts. The inflation data, released on Wednesday, reduced expectations for near-term easing and revived discussion of whether policy could stay restrictive for longer than many investors had hoped.
The consumer price index, a key measure of changes in the cost of a typical basket of goods and services, is closely watched because it shapes monetary-policy expectations. A hotter inflation backdrop generally weighs on risk assets by keeping borrowing costs elevated and limiting the prospect of easier liquidity. For crypto markets in particular, that environment can make speculative positioning less attractive.
Bitcoin has already had a weak first half of the year, falling 36% since January. gold has also pulled back 23% from its January peak, even as crude oil has climbed more than 50% over the same period. Analysts said the latest inflation reading did little to change that broader pattern, with investors still focused on whether real yields remain high enough to discourage flows into non-yielding assets.
Some market participants argued that the latest data was not encouraging enough to trigger a major reallocation into Bitcoin by institutional investors. They said large investors are likely to wait for clearer evidence that inflation is easing sustainably before increasing exposure. Added uncertainty from geopolitical tensions and the risk of oil-supply disruptions could also keep inflation expectations elevated through the summer.
Bitcoin was described as vulnerable near current levels, with some analysts pointing to $60,000 as a key line to watch. Broader risk appetite, they said, is unlikely to improve meaningfully until inflation cools, rate cuts become more plausible, and liquidity conditions begin to improve.
Markets are currently pricing a 98.4% chance that the Fed will leave rates unchanged at its June 17 meeting.Lawmakers in Delaware and New Jersey have moved closer to banning cryptocurrency ATMs, joining a broader state-level effort to curb kiosks that authorities say are frequently used in scams. Both states advanced legislation this week that would prohibit the ownership, installation, operation, or sale of crypto ATMs, reflecting growing concern over consumer losses tied to the machines.
In Delaware, the House Economic Committee approved House Bill 441 and sent it to the full chamber. The measure would go beyond the kiosks themselves and also prohibit fiat-to-crypto transactions that effectively replicate their function, including certain point-of-sale and cashier-based cash-to-crypto services. If enacted, existing machines would have to be removed within 90 days. Violations could carry fines of up to $10,000, and operators found in breach would be required to refund fees to users or contribute those funds to a consumer protection pool if customers cannot be identified.
New Jersey advanced a similar proposal after the Senate Commerce Committee voted unanimously to send its bill onward. That measure would bar anyone from owning, controlling, installing, managing, or offering crypto ATMs for sale. Lawmakers in the state cited a significant increase in scams associated with the kiosks. The bill includes penalties of up to $10,000 for a first violation and as much as $20,000 for repeat offenses.
The push comes as federal data underscores the scale of the problem. The FBI said in May that it received nearly 13,500 complaints involving crypto ATMs in 2025, with reported losses exceeding $388 million. More than half of those complaints involved victims over age 50, and losses from that group topped $302 million.
Delaware and New Jersey are following Indiana, Tennessee, and Minnesota, which have already enacted statewide bans. Some cities have also adopted restrictions, while other states have opted for transaction limits instead of outright prohibitions. Operators argue that they are being unfairly blamed for criminal activity carried out by third parties, and many have added scam warnings or transaction limits. Still, mounting regulatory pressure has become a major challenge for the business, contributing to broader strain across the sector.
