With the recent CPI Inflation Report, there’s been a noteworthy uptick in Bitcoin’s value. The correlation is no mere coincidence;
CPI or Consumer Price Inflation measures the rate at which the average price of chosen goods and services increases over a while. A higher than expected reading is generally seen as bullish, or positive, for Bitcoin, while a lower than expected reading is seen as bearish.
Crypto enthusiasts are viewing this data as a key indicator of the strength of the Bitcoin market. The reason behind this interaction is two-fold: Firstly, inflation generally triggers investors to seek assets that promise high returns, a category which Bitcoin falls into. Secondly, as the premier cryptocurrency, Bitcoin operates globally, linking it to numerous national economies and, by extension, their inflation rates.
Simply put, CPI numbers reflect the health of economies; if people are spending more, it suggests they have more to spend – a bullish sign for any investment, including Bitcoin. Read More
Leave a Reply