HomeBitcoin NewsBitcoin Shoots Up as Inflation Slides a Tad

Bitcoin Shoots Up as Inflation Slides a Tad

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Bitcoin endured a slight rise in mid-May after numbers emerged suggesting inflation was potentially easing up.

Inflation May Be Dying Down a Bit

Regions like the U.S. and the U.K. have been subjected to the highest inflation seen in roughly 40 or 50 years. Things like gas prices, food prices, and the costs of other goods and services have risen tenfold over the past year or so, and it’s becoming much harder to put one’s money to positive use.

The economies of both countries have cracked under the weight of weak leaders and financial tactics that saw things like hiking rates and the dissolvement of people’s ability to afford cars and homes. The good news is that inflation has lessened somewhat. Not by much, but today, a little chipping here and there can go a long way.

The consumer price index report shows inflation is now just under the five percent mark, which is slightly less than what many analysts and economists expected. Callie Cox – an analyst at investment firm e-Toro – commented in an interview:

When it comes to inflation data, bitcoin embraces its identity as a riskier asset. Bitcoin has outperformed the S&P 500 on five out of the last six CPI days, and it’s on track to make it six out of seven with today’s gains… Inflation is coming down, just as the Fed intended, and that’s easing fears about the economy’s future. Lower inflation also supports the case for the end of rate hikes, and higher rates are what started the crypto winter over a year ago.

Steven Lubka – managing director at Swan Bitcoin – also threw his two cents into the mix, saying:

Ultimately, this represents an easing of tight liquidity conditions, an environment in which bitcoin has done extremely well historically.

Never was bitcoin put through more suffering and tension than in 2022. During that time, inflation was the highest it had been in several decades, and the Federal Reserve – as a means of combating the problem – was consistently hiking rates to the point that they began to take serious tolls on the prices of BTC and its altcoin cousins.

A Year of Suffering for Crypto

During this period, bitcoin lost more than 70 percent of its value and fell from the $68,000 all-time high it achieved in November of 2021 to about $16,600. Things didn’t stop there, however, and several digital currencies chose to follow in its footsteps, thus contributing to the crypto industry losing more than $2 trillion in overall valuation in under 12 months. It was a sad and ugly sight to see.

Putting all this aside, while inflation may be easing somewhat, BTC is not quite out of the woods yet as the Fed has made it clear 2023 will still be a year of further rate hikes.

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Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

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