According to The Kobeissi Letter, both Democrats and Republicans are reporting sharply higher inflation expectations for the next 12 months, with Democrats anticipating +9.6% inflation and Republicans +1.2% (source: The Kobeissi Letter, Twitter, May 16, 2025). This shift in sentiment is critical for traders, as increased inflation forecasts can drive investors toward inflation-hedged assets such as Bitcoin and other cryptocurrencies. Historically, heightened inflation expectations have corresponded with increased crypto market volatility and trading volumes, as market participants seek alternative stores of value (source: Arcane Research, 2023). Traders should monitor inflation sentiment closely, as these dynamics could signal renewed bullish momentum in the crypto sector.