Bitcoin (BTC) continues to trade within a narrow range around $77,000 during U.S. morning trading on Friday, reflecting ongoing market stability despite recent economic indicators.
The University of Michigan’s Consumer Sentiment Index for May has dropped to a record low of 44.8, down from 48.2 in April and below the anticipated figure of 48.2. The Expectations Index also saw a decline, reaching a record low of 44.1.
In addition, the one-year Consumer Inflation Expectations Index increased to 4.8%, up from 4.5% in the previous month. The five-year Inflation Expectations Index also rose, moving from 3.4% to 3.9%.
This economic data presents a challenging backdrop for Kevin Warsh, who is poised to become the new chairman of the Federal Reserve. Appointed by President Trump, Warsh is expected to guide the central bank towards potential interest rate cuts. However, escalating oil prices due to the ongoing conflict in Iran have reignited inflationary pressures that had previously begun to ease.
Market expectations indicate a greater than 70% likelihood of one or more interest rate hikes before the end of 2026, reflecting concerns over inflation and economic growth.
Warsh’s official swearing-in ceremony is scheduled for 11 a.m. ET.
On the stock market front, U.S. equities are experiencing modest gains as investors prepare for the upcoming three-day weekend. The Nasdaq composite has risen by 0.3%, while the S&P 500 has increased by 0.4%.
Bitcoin remains stable at $77,000 amid declining consumer sentiment in the U.S. The University of Michigan's Consumer Sentiment Index has hit a record low, complicating the economic landscape as Kevin Warsh prepares to lead the Federal Reserve.