Bitcoin falls back to $81k, and Fed officials do not rule out the possibility of “another rate hike”

According to public statements released by multiple Federal Reserve officials on May 7, 2026, several Fed officials warned that U.S. inflation risks are heating up again, and that interest rates may remain at elevated levels for a longer period; the possibility of another rate hike is not ruled out. After Bitcoin (BTC) briefly broke through $82,000 to hit a three-month high on Wednesday, it fell again on Thursday to around $81,000.

Hawkish statements from Fed officials and the latest inflation data

According to a public statement from St. Louis Fed Chairman Musalem (Musalem), the policy risks have clearly shifted toward upside inflation. Interest rates may need to be kept unchanged “for a period of time,” and could be raised further if necessary. He said that price increases in key industrial inputs such as aluminum, helium gas, and diesel are driving a broader spread of cost pressures.

According to a public statement from Chicago Fed President Goolsbee (Goolsbee), if high oil prices persist for several months, they will gradually start to affect global supply chains. He said that it is not yet “stagflation,” but if the situation continues, it will become “increasingly tense.”

Based on publicly available data, the average U.S. gasoline price has risen to above $4.50 per gallon, and the New York Fed’s global supply chain pressure index has risen to the highest level since July 2022. U.S. March PCE inflation on a year-over-year basis accelerated to 3.5%, while core PCE rose to 3.2%.

Bitcoin market data and on-chain indicators

According to data published by Glassnode on the X platform, Bitcoin whales on Hyperliquid have pushed net long positions to a new 2026 high. The whales’ total open interest on Hyperliquid is about $3.5 billion; longs are slightly above shorts, and most liquidations over the past month have been concentrated on the short side.

Based on market data, Bitcoin’s 30-day average funding rate has remained negative for 67 consecutive days, the longest streak in nearly a decade. Binance’s long-to-short ratio is about 0.53, indicating that most accounts still hold a bearish view.

Iran conflict and geopolitical developments

According to public statements by U.S. President Trump on May 6, 2026, he expressed optimism about a deal between the U.S. and Iran, saying that a possible agreement could include Iran shipping its highly enriched uranium to the United States.

According to statements from Iran’s foreign ministry spokesperson Baghaei, Iran has not yet replied to Iran’s view to the intermediary Pakistan regarding the U.S. 14-point proposal. Iran claims that U.S. media are publishing “speculative reports and false news.”

According to reporting by Lebanese Broadcasting Corporation International (LBCI), the third round of peace talks between Israel and Lebanon is most likely to be held next week in Washington, D.C.

FAQ

Which Fed officials issued hawkish statements on May 7, and what were the core points?

Based on public statements, St. Louis Fed Chairman Musalem said inflation risks are to the upside, interest rates may stay in place for a long time, and could be raised further. Chicago Fed President Goolsbee warned that if high oil prices persist, they will gradually start to hit global supply chains.

What were Bitcoin’s market performance and on-chain data on May 7?

Based on market data and Glassnode data, after Bitcoin broke through $82,000 on Wednesday, it fell on Thursday to around $81,000. The net long positions of Hyperliquid whales rose to a new 2026 high, and the 30-day average funding rate has been negative for 67 consecutive days, setting a record for nearly a decade.

How did the latest U.S. inflation and energy data perform?

Based on publicly available data, U.S. March PCE inflation rose to 3.5% year over year, while core PCE rose to 3.2%. The average U.S. gasoline price has risen to above $4.50 per gallon, and the New York Fed’s global supply chain pressure index has risen to the highest level since July 2022.