• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: How Uniswap Was Deployed On The Binance Smart Chain
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: How Uniswap Was Deployed On The Binance Smart Chain
Bitcoin

Bitcoin Sees A Positive Response As Inflation Reaches 8.5% With March CPI Data

Saeed Hassan by Saeed Hassan
11 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

Bitcoin prices increased even after March CPI data showed that inflation in the United States continues to increase, hitting its highest level since 1970 with a reading at 8.5%.  However, the price of Bitcoin has been currently 11% down since January 1st, but when you adjust for inflation, the net price change is just 2.5%.

Looks like Bitcoin has been acting as an inflation hedge for quite some time now. The Nasdaq (QQQ) has been down 14% since the start of 2022. Indicating that people want to buy Bitcoins to maintain their purchasing power when prices rise due to higher inflation levels across America.

Related Reading | Can The 600-Day MA Support Line Push Bitcoin Again?

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Inflation Effects On Crypto Market

On April 11, Bitcoin prices fell by over $3,000 after rumors that inflation would be high. However, the fall was opposite to expectations for an asset class considered an inflation hedge.

Bitcoin price
Bitcoin is currently trading above $41,000 even after high inflation | Source: BTC/USD chart from Tradingview.com

The relationship between Bitcoin and tech stocks has been somewhat intriguing for several months. For example, the price of Bitcoin compared with Nasdaq Indexes suggests some correlation in those days leading up to CPI data release day. 

Is Bitcoin An Inflation Hedge?

In the lead-up to this year’s CPI release, many investors believed that inflation data had been priced into stocks for too long. Fears grew even greater as it became clear how high White House estimates suggested these numbers would be “extraordinarily elevated.”

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Lark Davis, a crypto investor, and analyst, tweeted;

Tomorrow’s bad inflation data could already be priced in after the warning from the White House, that is if it is only like 8.5%. But if it is anything over 9%, then we are probably heading lower as that is worse than the market expects. IMO. 

The short-term market response to CPI data seems optimistic, but it’s unclear how investors will react in the long term. Bitcoin outperformed tech and mirrored its overall sentiment; for example, Nasdaq moved up over 5 points in pre-market trading as the news broke.

Related Reading | TA: Why Bitcoin Price Could Eye Strong Recovery Above $41.5K

Crypto traders on Twitter compare traditional finance’s savings rates to DeFi and Bitcoin’s inflation due to its fixed supply. Bitcoin price increased by $400 in 30 minutes over the news. 

Another crypto analyst, Josh, tweeted;

If you’re not earning +8.5% on your savings, you are losing money!

Meanwhile, #Bitcoin’s inflation rate is at 1.7% and cannot be manipulated.

The CEO of MicroStrategy, Michael Saylor, said “inflation is worse than you think” before this week’s Consumer Price Index (CPI) report. This sent equities markets into an immediate dive as traders prepared themselves with higher prices.

The markets were bracing themselves for inflation to increase even higher than expected. This event has led to a rare sell-the rumor buy news trading pattern. Bitcoin hit a local bottom of $39,000 around 9 pm EST before climbing throughout the night.

                     Featured image from Pixabay.com, chart from Tradingview.com
Tags: bitcoinCPIcrypto marketcryptocurrencyinflation
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Saeed Hassan

Saeed Hassan

Saeed Hassan is a finance and cryptocurrency enthusiast who has been writing about Bitcoin and the blockchain since 2016. He is an author at Bitcoinist and NewsBTC, and he also runs his blog, where he writes about all things related to crypto and finance. In his spare time, Saeed enjoys playing cricket and watching Marvel series.

Related Posts

Bitcoin $1 million

Bitcoin To $1 Million? Why Hyperinflation Is Unlikely In The US

2 hours ago
Bitcoin Proof of work

$1 Million For 1 Bitcoin Possible Says This Report, Here’s Why

15 hours ago
Bitcoin

$28.7K Could Be Next Level To Break For Bitcoin, Here’s Why

16 hours ago
FOMC Decision Will Push Bitcoin Up Or Down? The $30,000 Question

FOMC Decision Will Push Bitcoin Up Or Down? The $30,000 Question

18 hours ago
Bitcoin

Here’s What John Lennon’s Son Thinks About Bitcoin

21 hours ago
Bitcoin FOMC

Bitcoin Price Stalls Ahead Of FOMC Meeting, How To Trade It

1 day ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Altcoin News Roundup: Orbeon Protocol (ORBN), VeChain (VET), and Litecoin (LTC) Make Headlines

March 22, 2023

TMS Network (TMSN) Continues to Grow, Polygon (MATIC) Partners with Salesforce as Polkadot (DOT) Partners with Stellar

March 22, 2023

Why Investors and Traders Are Accumulating Shiba Inu (SHIB), Fetch.ai (FET), and TMS Network (TMSN)

March 22, 2023

The Most Exciting Cryptocurrencies Not To Miss in March, 2023: TMS Network (TMSN), Terra Classic (LUNC) and Algorand (ALGO)

March 22, 2023

Toncoin (TON), Polygon (MATIC) and Orbeon Protocol (ORBN) – Three Tokens Fighting Back Against The Bear Market In 2023

March 22, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.