Inflation is something that every investor dreads and is in constant fear of, they don’t want their money to devalue with the passage of time, and that is why they continue to invest in every emerging opportunity presented before them. To the investors of today, the crypto market is nothing more than a hedge against inflation, and Bitcoin in good capacity is certainly taken up as a cryptocurrency which could prove to be the case. The US Department of Labor recently released a sufficient report depicting a sudden increase in the prices of consumer goods which ultimately adds up as inflation is going to increase in this dreadful episode of economic collapse.
Investors are more fearful than ever about this rapid increase in inflation, and they are looking towards every possibility and opportunity they can invest in to lay inflation off of their backs. The consumer price index or CPI is being calculated since the early 1990s to determine where the market is turning towards and if inflation is going to meddle with affairs of financial importance to the state. The report said that CPI has never been that high since 1990. Everything from gasoline to rent is up 6.2%, while the overall consumer price index itself is up 0.9%, and that is happening on a monthly basis.
Bitcoin is Performing Opposite to Conventional Markets
The stock market has been in the red, too, with the S&P 500 index claiming a down of 0.29%. Bitcoin was trading slightly above $68K during all this, but then after a few hours, the cryptocurrency was ultimately trading above $69K. This is nothing less than a statement that during hard times when inflation is kicking in in the stock market is backing off, there is another safe haven where investors can put their money, and that is the crypto market.
At the moment, it might seem that gold is losing its hold on being the ultimate reserve of wealth as Bitcoin is giving it a pretty hard shake-up during these times of inflation. But it is possible that the whole thing is temporary, and with the passage of time, the craze for crypto might die down, and investors once again are putting their money with gold and conventional trading markets.