Bitcoin rises 5% as US inflation hits 7%

The narrative of bitcoin as a hedge against inflation has just gained more traction as BTC investors have reacted positively to the US inflation numbers.

According to Dice released by the Labor Department on Wednesday (12), the Urban Consumer Price Index rose 0.5% in December, reaching 7% in the last 12 months.

Annual inflation is at its highest level in 39 years, and is in its seventh straight month above 5%. The US Federal Reserve (Fed) has already abandoned the “temporary inflation” narrative and started to take the matter more seriously.

The stock market reacted positively, with the S&P500 up 0.5%. But the highlight is the price of bitcoin, which is up 5.2%, according to Coinmarketcap.

The rise in BTC prices is even more impressive because the market was seeing a short-term downtrend since the asset lost its psychological support in the $50,000 area.

Inflation in Brazil

While bitcoin is trading at R$244,561.00 in Brazil, according to Coingolive, the country has seen double-digit inflation since September, closing December at 10.06%.

As we discussed in this morning’s market summary, last year’s inflation target was 3.75%, with a plus or minus 1.5 percentage point tolerance. The Central Bank of Brazil failed miserably, but other countries are on the same path.

See too:

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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