The US government released May inflation data on Wednesday (10), reaching 4.2% annually. In addition, Donald Trump again threatened Iran, stating that the country took too long to accept an agreement and will now pay the price.
As conflicts between the US and Iran have consequences for oil prices and, consequently, for the inflation of various products, these events continue to put pressure on Bitcoin.
At the time of writing, the cryptocurrency is trading in the range of US$61,500, having lost 16.5% of its value in the month of June.
US inflation rises 0.5% in May, but within expectations.
Fuel prices continue to be the main culprit behind American inflation due to the closure of the Strait of Hormuz and the increase in the price of a barrel of oil. After soaring 21.2% in March and 5.4% in April, fuel prices rose another 7% in May, accumulating a 40.5% increase in the last 12 months.
Food prices, on the other hand, saw a decrease compared to the previous month, rising only 0.2% (0.1% at home and 0.3% away from home). What helps lower overall inflation are medical care goods (-0.7%) and transportation services (-0.6%).
Despite this, US inflation reached 4.2% this year, far from the Fed's 2% target, and the highest percentage in the last three years.
US inflation data was released this Wednesday (10) by the BLS. Source: BLS. 
US inflation hits its highest level in 3 years. Source: TradingEconomics.
Although these numbers were expected, this puts pressure on the Fed to keep interest rates at current levels and even raise them.
According to CME's FedWatch tool, a 0.25% increase is expected later this year. As a consequence, this should slow the economy and leave riskier assets, such as Bitcoin, with less demand.
Trump threatens Iran again.
One of the main reasons for American inflation is the increase in the price of oil, caused by the blockade of the Strait of Hormuz, which was Iran's response to US attacks.
Although the countries had begun talks in previous months, even reaching a ceasefire , the conflict continues.
On social media, Trump once again threatened Iran on Wednesday morning (10).
"The Iranian Armed Forces are a complete and utter mess. Much of it, like the Navy and Air Force, practically doesn't exist anymore – they've been completely defeated. Iran is all talk, no action. The bully of the Middle East is DEAD!!! They took too long to negotiate a deal that would have been great for them, now they're going to have to pay the price!!! President DONALD J. TRUMP"
Trump threatens Iran again, bringing uncertainty to the market.
In April, the American president had made even harsher threats, stating that an entire civilization would die that night . For Arthur Hayes, founder of BitMex, the main question for the market is whether the two countries will reach an agreement .
Finally, Bitcoin remains under pressure amid fears that the closure of the Strait of Hormuz will be the new normal, harming economies in countries other than the US.
