As the U.S. Consumer Price Index (CPI) has soared, the cryptocurrency community’s interest in Bitcoin (Bitcoin) Is indeed a hedge against inflation.
The Consumer Price Index is a measure of the average price changes consumers pay for a package of goods and services. June saw the largest monthly increase in the past 13 years. Business insider Report on Tuesday.Reported that inflation has soared begin The CPI rose by 2.6% in March, followed by 4.2% in April, and finally rose by 5.4% in June.
Interestingly as CPI #inflation Has climbed from 1.4% year-on-year growth in January to 5.4% in June, #Bitcoin Basically halved
[Past performance is no guarantee of future results] pic.twitter.com/QIXeb2m5Vv
-Liz Ann Sonders (@LizAnnSonders) July 13, 2021
Ed Moya, a senior equity analyst at the foreign exchange company Oanda, said in a report on Tuesday: “Bitcoin no longer acts like an inflation hedge and will continue to be higher than expectations for higher yields.” However, this kind of inflation Seen as temporary, this may be the reason why the June CPI report was not enough to be a catalyst to break Bitcoin’s sideways trading, Moya added.
The crypto community subsequently reacted to these CPI and Bitcoin observations, and many industry advocates Emphasize Their early Bitcoin investments and earnings “have hedged the future.” Some Bitcoin enthusiasts pointed out that Bitcoin has been growing throughout history and has made huge gains in the long run.
-Hajek.HODL₿⚡ (@hajek_miloslav) July 13, 2021
According to some crypto experts, Bitcoin is indeed “not a good hedge against inflation.” Dead GreenspanThe founder of Quantum Economics, a money management company, told Cointelegraph that there “seems no correlation” between Bitcoin’s price movements and inflation or deflation data, noting:
“Of course, Bitcoin has been performing well over time. But most of the gains occurred during a global deflationary period when all risk assets were rising. Now inflation is really rising. This is the first time since Bitcoin was born. The performance is obviously poor.”
The latest argument triggered by the CPI brings another turning point in the long-standing debate about Bitcoin as a hedging tool. Many financial analysts, including Nassim Taleb, believe that Inflation has nothing to do with Bitcoin priceNevertheless, some global investors like Paul Tudor Jones have turned to Bitcoin Protect their investments from inflation.