The U.S. consumer price index (CPI) has risen 6.8% this year. Inflation a general increase in prices and fall in the purchasing value of money. reports favored the Bitcoin price, albeit only for a moment.
The inflation rate in the United States continues to rise at an accelerating pace not seen in nearly 40 years, according to the latest official reports.
The U.S. Labor Department said Friday that inflation rose in November to its highest level since 1982. The federal agency said the Consumer Price Index (CPI), which measures the cost of a broad basket a basket, when used in the cryptocurrency space, refers to a collection of digital currencies managed as a single asset. of goods and services, has risen 6.8% in the last 12 months. . The figure is the highest since the 1980s, when the inflation rate was 6.9%.
As such, the CPI rose 0.8% during November and after having risen 0.9% in October. For its part, the consumer index, which excludes food and energy prices, increased by 4.9% over the previous year, which was the sharpest rise since mid-1991.
As reported by several news outlets, the latest figures were in line with some analysts’ predictions. A group of economists surveyed byReuters had forecast that the CPI would rise 0.7% and increase 6.8% year-on-year. Nevertheless, the inflation rate remains significantly higher than the US Federal Reserve’s (Fed) target of 2%.
Bitcoin touched USD $50,000 momentarily
News of rising inflation in the U.S. helped the digital currency currency is a medium of exchange that defines value. market, which saw a momentary rally following the reports.Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. soared nearly USD $2,000 to briefly recapture the USD $50,000 mark while other major cryptocurrencies also surged amid the announcements.
According toCNBCother markets also reacted positively to the news, including the stock indexes on Wall Street that rose. On the other hand, government bond yields fell following the reports.
As seen on previous occasions, it seems that the inflation news increased investors’ appetite for risk. After the release of the October CPI data,Bitcoin soared nearly $3,000 to quickly reach a new all-time high of $68,950. However, the rally was quickly reversed at that point and the asset has been in a downtrend ever since.
The cycle seemed to repeat itself as the positive effect on the market an area or arena, online or offline, in which commercial dealings are conducted. for digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets was short-lived . As of press time, red numbers prevail in the market, with most of the major cryptocurrencies registering declining prices. According to data fromnone, BTC ronda actualmente los USD $48.000 mientras Ethereum a decentralized open-source blockchain with smart contracts functionality. recorded a fall of almost 4% to settle at USD $4,000.
Otras criptomonedas como Solana ( SOL ),Binance Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. ( BNB ) yCardano ( ADA ) are also trading lower with up to double-digit percentage losses in the last week. The total crypto market capitalization is USD $2.24 trillion, down 2% in the last 24 hours, according toCoinMarketCap.
Lennard Neo, analyst for Stack Funds had already anticipated that the bullish reaction would be momentary and believes that the Fed’s upcoming announcements could provide better clues for the crypto market’s price development. CoinDesk lo citó:
I think the Bitcoin surge was more of a knee-jerk reaction and probably won’t stick. We expect more sideways trading as eyes shift to the central bank meeting next week.
Bullish Forecast for Crypto as Inflation Rises
The U.S. has printed 35% of the total U.S. dollars in circulation in 2021 alone, which has played a key factor in the record inflation, as highlighted byCointelegraph.
This increase in the supply of fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currency in response to the pandemic crisis has prompted investors to resort toBitcoin as a hedging asset; mainly due to its nature outside government control and limited supply. Hence, the largest cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. will register an annual increase of almost 70% this 2021.
In general, digital currency market observers expect more price fluctuations as inflation rises and the new variant of the coronavirus, Omicron, causes concerns in the traditional financial market.
In this regard, the analyst ofQuantum EconomicsJason Deane, anticipates a longer-term price increase forBitcoin and gold as the purchasing power of the U.S. central bank declines. “The Fed has no real tools to try to fight it and is effectively tied up down the road with the rest of us“commented on inflation toCoinDesk.
Mientras tanto, el gurú de las finanzas y autor de ‘Padre rico, padre pobre‘, Robert Kiyosaki, also took the opportunity to warn his Twitter followers that a “colapso” y “depression” economic. As on previous occasions, he advised taking refuge in assets such as Bitcoin, precious metals and real estate; although he warned that these too will fall amid the anticipated crisis.
FED & Biden pushing FAKE INFLATION. Crash and Depression coming. Gold, silver, Bitcoin, real estate will crash too. Ready to buy more gold, silver, Bitcoin, real estate after crash has crashed. Time to get richer after fake inflation crashes. Be aware. Take care.
— therealkiyosaki (@theRealKiyosaki) December 9, 2021
- Fed Chairman Jerome Powell says U.S. inflation will not be a transitory phenomenon
- JPMorgan Bank says Bitcoin price rise is driven by inflation, not ETFs
- Multimillonario Barry Sternlicht compró Bitcoin y Ethereum para protegerse de la inflación
Article by Hannah Estefania Perez /DiarioBitcoin
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