Bitcoin On Course for a Bull Run as US Inflation Jumps to Highest Level Since 2008

Bitcoin’s price has traditionally correlated with inflation rate in the United States. This is mostly due to the fact that many people utilize the asset to protect themselves against inflationary pressure.

According to a recent research, inflation in the United States has reached new highs not seen in the past 13yrs. According to a study released by the US Bureau of Labor Statistics, inflation has been gradually rising since January, climbing from 1.4%. In May, the CPI increased from 4.2 percent to 5%.

The Core Price Index, which is devoid of food and energy, also reached new highs for the first time since 1992. It increased by 3.8% year-over-year and by 3% since May.

From April to May, the cost of secondhand autos increased by 7.3%. According to the research, the price increased by 29% over the previous year. Energy prices, however, were not exempted, rising by 28.5 percent year over year.

The cost of flights, rental vehicles, used vehicles, homes, furnishings, and apparel all increased in May, according to the survey. Inflation, according to Adam Crisafulli, creator of Vital Knowledge, will slow down in the coming months. “This CPI is unlikely to change the story significantly, while there are still signs that inflationary pressure may slow in the following months.”

The Federal Reserve has also reported that it has liquidated $160 million of its corporate debt holdings. The Federal Reserve began by dumping its holdings in the 16 bond ETFs (ETF). As the economy tries to shift gears, inflation, as per European Central Bank President Christine Lagarde, is unavoidable.

The stock market has responded sharply to the rising inflation, which has been a source of anxiety as investors foresee a tougher monetary policy as a result of higher cash rates.

In theory, more inflation reduces the buying power of the US Dollar. Individuals and organizations are forced to flee the US Dollar in favor of assets that have traditionally held value or appreciated in value. This underscores why the S&P 500 soared to a new high of $4249 on Thursday. After dipping as low as $32,000 in recent days, the Bitcoin price is steadily rising up the price curve, with a price level of roughly $35,000.