Bitcoin fell below $73,000 on 28 May for the first time in six weeks, pressured by stronger-than-expected US inflation data, a downward revision to US economic growth in the first quarter and renewed military exchanges between the US and Iran that weighed on global risk appetite.
Bitcoin Hits Monthly Low as Hot US Inflation Data, Iran Strikes Rattle Markets
28 May 2026 - 17:22 CEST
By Matt Neill
The pullback follows a strong rally across crypto markets over the past month, during which Bitcoin (BTC) climbed back above $80,000 while AI and privacy-linked digital assets attracted renewed investor interest amid improving sector sentiment.
Bitcoin was trading at around $72,600 as of 14:00 UTC, down 2.6% over the previous 24 hours, according to CoinMarketCap data. US equity indices also traded lower after the opening bell. Despite the decline, Bitcoin remained well above its early April low of just over $66,000.
Macro double blow
The US Bureau of Economic Analysis (BEA) said the personal consumption expenditures (PCE) price index – the Federal Reserve's preferred inflation gauge – rose 3.8% in the 12 months through April, marking its fastest pace since May 2023 as higher energy prices linked to disruptions in shipping through the Strait of Hormuz pushed costs higher.
Core PCE, which excludes food and energy prices, rose 3.3% year-on-year. The Fed uses PCE data to assess progress towards its 2% inflation target and financial markets now expect the benchmark overnight interest rate to remain in the 3.50%-3.75% range well into 2027. Minutes from the Fed's April meeting also showed a growing number of policymakers open to additional rate increases.
In a separate release, the BEA revised its estimate for US economic growth in the first quarter to 1.6% from 2.0%, citing weaker private inventory investment and softer consumer spending, particularly in services, compounding the negative market sentiment.
Hormuz strikes add premium
Macro pressure intensified alongside renewed military tensions in the Gulf. Iran's Islamic Revolutionary Guard Corps said it targeted a US air base in Kuwait after US forces struck Iranian drone infrastructure near Bandar Abbas and shot down at least four Iranian attack drones over the Strait of Hormuz. Kuwait later said it intercepted a ballistic missile.
The escalation triggered a broader retreat across risk assets, with traders cutting exposure to cryptocurrencies and growth equities amid fears of prolonged disruption to energy markets and the prospect of tighter monetary policy.
Markets briefly pared losses around 14:30UTC following unconfirmed reports that the US and Iran had reached a provisional agreement to extend the ceasefire for 60 days, briefly lifting Bitcoin back above $73,000 before the cryptocurrency reversed course as broader macroeconomic and geopolitical concerns continued to weigh on sentiment.
