Grayscale Research has released a report indicating that U.S. inflation is accelerating, delaying Federal Reserve rate cuts until September 2027. The report highlights that ongoing geopolitical tensions, particularly the Israel-Iran conflict, have driven global oil prices higher, exacerbating inflationary pressures in the U.S. This environment complicates the Fed's monetary policy decisions, as noted in their April 2026 statement. The market's probability of rate cuts has significantly decreased, with only a 1% chance for the Fed's June and July meetings, down from previous expectations. This shift in sentiment is reflected in the declining probability of rate cuts, which could continue to exert downward pressure on Bitcoin prices. High interest rates typically reduce liquidity and investment in risk assets, impacting the cryptocurrency market.