‘Hundreds Of Billions, If Not Trillions’ Set To Flow Into Bitcoin As US Inflation Hits 7% For First Time In Nearly 40 Years

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‘Hundreds Of Billions, If Not Trillions’ Set To Flow Into Bitcoin As US Inflation Hits 7% For First Time In Nearly 40 Years

U.S inflation rate just hit 7% — the highest in 40 years. The latest Consumer Price Index (CPI) report spurred a >3% and 4.5% rebound in price value for Bitcoin and Ethereum, moving their unit value above to $43,000 and $3,300. 

Nepo mafambiro ekare anoratidza 11 trillion yegoridhe musika sesarudzo yepamusoro yeruzhowa yakasimba inopesana nekuderedzwa kwedhora, mhinduro yemusika wekrispto kune inflation yemazuva ano inoratidza kuda kwevakawanda kutendeukira kumari ye crypto nguva ino.

This is especially true for many middle-to-high income citizens looking to protect their cash balances and near-liquid investments against value erosion. Bitcoin, Ethereum, and the likes with over 160% value growth in 2021, now stand a better chance as a suitable alternative against fiat value loss for the average American investor.

The latest Consumer Price Index chati inoratidza simba (33.3%) sechikonzero chikuru chekukwira kwemitengo, inoteverwa nedzimba (4.1%), mitengo yezvokudya (> 6%), motokari, uye mabasa ekurapa (> 2%). IUS yakasangana nekushaikwa kwepeturu kubva apo Biden yakavhara ongororo yenzvimbo nekuda kwekuunza kunze kwenyika.

Fed's Propose Austere Control Measures

The US Federal Reserve System disclosed in November that it expected a further increase and has already earmarked steps to put such a surge in check. Key among these steps is the hiking of interest rates to cut back on increased borrowing during the period.

Bazi rinotonga rakatiwo rinogona kurasa mari yakawanda yemabhondi ehurumende kusvika pamadhora masere emadhora kuti ibvise mari yakawandisa kubva kuruzhinji. 

Iyo Fed, zvisinei, yakaramba ichichengetedza kuti cryptocurrencies zvinhu zvine njodzi. Iine mukana wekuti vagari vakukurwe kune crypto assets, inogona kusarudza kusunungura iyo chiyero chepepa rekuchengetedza, ichityaira Treasury inobereka yakakwira uye inokwezva vatengesi kure nekrisptos.

Crypto Hedging: Maitiro ari kukura

According to Glassnode, the latest increase brings temporary relief for Bitcoin, which has seen a drought of retail investors since last month. The current downtrend had left many recent investors anchored around the $52,000 resistance, below the water on their investment capital.

With the predicted rise in inflation rates, many like MicroStrategy’s Michael Saylor who maintains that BTC Will Be a $100 Trillion Market Cap Asset have argued that Bitcoin is matured to serve as a hedge against the dollar, at par with gold.

Ichi chinzvimbo, vanopikisa vanotenda, chichiri chakanyanya kukurumidza kutaura nenjodzi yaro uye kusagadzikana, izvo zvaita kuti mabhirioni ekare azvinyore sechinhu chekufungidzira.

Original source: ZyCrypto