Major central banks, including the Federal Reserve, European Central Bank, and Bank of England, have entered a "wait-and-see" mode as global markets face stagflation risks. With energy prices driving inflation and economic growth diverging, these institutions are hesitant to signal future policy directions. The U.S. reported a 2% GDP growth in Q1, while inflation rose to 3.5%, the highest in nearly three years. Similarly, the Eurozone's GDP stagnated as inflation rebounded to 3%. Geopolitical tensions, particularly in the Middle East, add to the uncertainty, with potential disruptions in the Strait of Hormuz. This environment complicates central banks' decisions on interest rates, as maintaining high rates could slow economies further, while lowering them might reignite inflation. The bond market reflects these concerns, with U.S. Treasury yields rising as stagflation risks are repriced. In the crypto market, Bitcoin benefits from risk-on sentiment, but volatility could increase if global markets shift towards stagflation.