Investors are encouraged to look closely at Bitcoin because of the record-high inflation

The price of everything in the United States is rising, and cryptocurrency prices are also on the rise! As data shows that U.S. inflation rose at a 30-year high, investors are more interested in BTC.
Consumers around the world and in the United States continue to feel the pinch from inflation. Recent data shows that the Consumer Price Index (CPI), rose 6.2% in October compared to last. This suggests that your $100,000 will turn into $54,800 if inflation is maintained at 6.2% for 10 years. The powerful force of compounding is the compounding effect. Satoshi is in a good place right now. #Bitcoin– David Marcus (@davidmarcus) November 10, 2021

The high print caused financial markets to take a hit on November 10. Investors were concerned about runaway inflation and loss of purchasing power. Major indicies pulled back from record-highs set earlier in the week. This contrasts with the price action in cryptocurrency markets, where a burst in bullish momentum sparked an 4.7% rise in Bitcoin (BTC), right as the CPI data was announced.BTC/USDT 4-hour charts. Source: TradingViewThe Fed’s rapid rise in inflation has prompted a growing number of calls to raise interest rates and end its easy-money policies. Many believe that the central bank is stuck in a corner and doesn’t have any options. A rise in interest rates could make it more difficult to service the U.S. debt. Recent statements by former U.S. Treasury secretary Larry Summers indicate that global financial markets are anticipating slow growth and low interest rates over the next few years. This will limit the central bank’s ability to guide economies. The Fed’s primary tool for influencing the market is the control of interest rates. It appears that the central bank will not be able to do anything else to address ongoing challenges. Bad news for fiat, but good news for cryptoCryptocurrency owners are uniquely placed to benefit from or at least receive some shelter against these recent developments. The declining value of fiat currencies such as the dollar has highlighted the potential of Bitcoin and other altcoins to act as hedges against currency devaluation, inflation, and other financial crises. According to Bitcoin Stimulus data, Americans who converted $1,200 of their April 2020 stimulus check into BTC would now have $12.172 worth of BTC. This is an increase of 914%. Current value of the $1200 stimulus check starting April 15, 2020. Source: Bitcoin Stimulus. These gains are not limited to the top cryptocurrency. The entire market has seen an influx that raised the total market capitalization by $190 billion to $2.95 Trillion during the same period. Total cryptocurrency market capitalization. Source: CoinMarketCapIn addition to the increased value of many tokens on the market cryptocurrency holders have been rewarded with numerous cryptocurrency stimulus checks in the form of airdrops such as the one from Ethereum Name Service, which created a five-figure payoff for early adopters. Participants in the cryptocurrency market have enjoyed the protection provided by holding assets that appreciate in value as the buying power of fiat currencies declines. This process is unlikely to slow down in the near future, even if inflation continues to rise. These views and opinions are the author’s and do not necessarily reflect those of You should do your own research before making any investment or trading decision.

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