Inflation hedge? Bitcoin jumps after consumer price data in US | Crypto News

Bitcoin increased profits after data showed that US consumer prices rose sharply for nearly 40 years.

Bitcoin increased profits after a report showed that US consumer prices rose sharply for nearly four decades.

Large crypto currencies on the market price have been known as rising inflation, in part due to its volatile availability. Bitcoin rose 4.4% to $ 50,101 in New York trading on Friday. The price has been rising around $ 50,000 since the weekend crash that dropped to 21% on Saturday.

“Bitcoin is still seen as an inflation barrier, especially for small investors,” said Matt Maley, chief market expert for Miller Tabak + Co. . ”

Crypto proponents have been arguing that Bitcoin and other digital assets, due to being an idiosyncratic economic group, could act as a barrier to other areas of the financial market. Only 21 million Bitcoin will be used under the computer system that oversees the release, although that number is not expected to be reached for decades.

Many well-known Wall Street advertisers and experts have come up with the idea of ​​using cryptocurrencies as a barrier to rising prices. Veteran hedge fund manager Paul Tudor Jones has previously said he loves him as a wealth store. Meanwhile, MicroStrategy Inc. Michael Saylor said the Federal Reserve’s respite from its inflation plan enabled him to use the money for Bitcoin software companies.

#Inflation it destroys our economy if #Kutupa it affects our body. #Bitcoin

– Michael Saylor⚡️ (@saylor) December 10, 2021

Consumer pricing prices rose 6.8% last month from November 2020, according to a Labor Department report released on Friday. Those who looked at the Bitcoin charts realized that its profit went up after the release of the data.

However, there are also many contradictions. The connection may not be where it appears, according to Marc Chandler, a senior market expert at Bannockburn Global Forex. He points out that the stock exchanges were following through on the report – so the merger could be risky, he says.

Some argue that Bitcoin did not last long to tarnish its inflation-hedge image. In addition, according to Cam Harvey, a professor at Duke University and a colleague at Research Affiliates, it seems like a fantasy and tends to fall from time to time.

“If Bitcoin is ‘digital gold’ and gold is an hedge of inflation, then Bitcoin too, isn’t it? Unfortunately, there is no evidence to support this, and even the relationship between rising prices and gold has been strained for years,” he wrote. Noelle Acheson at Genesis Trading, in the report.