Downside risks for BTC price are also heightened due to the recent dollar bounce.
Inflation as it relates to money means the devaluation of a payment vehicle amid the rising cost of goods and services. The term usually refers to fiat currencies, which can lose value when a government expands the supply of dollars in an economy. Venezuela saw its currency lose significant value in 2018 during hyperinflation — an exaggerated form of inflation. When it comes to cryptocurrencies, however, inflation works differently. Many assets, such as Bitcoin, have a maximum supply programmed into their code, which can prevent a loss of value due to added supply. Bitcoin does entail some level of inflation, as more coins are released into its circulating supply through a set and predictable mining schedule, but maximum supply sets definite limits on BTC inflation.
Bitcoin bulls ducked for cover as the Federal Reserve started paying interest rate returns on cash deposits via its reverse repurchase program.11872
Analysts anticipate Bitcoin to continue its recovery rally above $40,000 on bets of increasing anti-inflation, but a looming death cross could spoil the upside outlook.20209
It's grim news for economists and a bittersweet advertisement for Bitcoin this week after the latest CPI report.15681
Economists expect the annual Consumer Price Index (CPI) to climb to 4.7%.20836
A young yield farming platform uses an aggressive token-burning strategy to beat DeFi’s inflation problem.11177
Miami Mayor Francis Suarez says he owns both Bitcoin and Ether but has been too busy to buy the recent dip.13820
Former congressman Ron Paul believes Bitcoin should be regulated and taxed the same as money.13132
Jeff Currie, the global head of commodities research at Goldman Sachs, described Bitcoin as a “risk-on” asset that is similar to copper as a hedge against inflation.12593
Institutional investors know crypto assets are volatile: “They’re making a generational bet and are not deterred by a few weeks of volatility.”27886
Billionaire Carl Icahn may invest up to $1.5 billion into crypto, noting that “much of the cryptocurrency issued today will not survive.”32103
Firms with iconoclastic leaders, like Musk and Dorsey, “would be the most likely to take the plunge” and commit sizable cash balances to crypto.71714
Mercado Libre’s move to accept cryptocurrency payments for real estate could usher in a new way of crypto mass adoption in South America.22206
Bitcoin is likely a topic of conversation among the treasury department of many U.S. companies amid rising inflation.20994
Bitcoin is approaching all-time highs versus gold. The digital currency broke above $59,000 on Tuesday while gold languished below $1,700.14944