Fed inflation numbers rose to a thirty-year high, what does that mean for Bitcoin?

The US Personal Consumption Expenditure (PCE) core price index rose to its highest level since 1992, fueling inflation fears. Some say that with a fixed supply of 21 million tokens, Bitcoin will withstand inflation. But is there any truth to that? Source: @ lisaabramowicz1 on Twitter.com Is hyperinflation on its way? PCE measures price changes in consumer goods and services traded in the US economy. Along with the consumer price index (CPI), the PCE is used by the Fed to make monetary policy. However, when compiling the PCE, the Bureau of Economic Analysis excludes food and energy costs because it is considered to be very volatile. Some critics claim that this policy underestimates the real cost of living. "A measure of the prices that those living in the United States or those who buy on their behalf pay for goods and services. Also called the basic PCE price index, because the two categories that can have price fluctuations – food and energy – neglect to make core inflation more visible. However, the PCE has hit a 30-year high, as Fed Chairman Lael Brainard said earlier this month, in an environment of record government spending, there are real fears that inflation risks will not be "temporary." Estimating the housing bubble, US investor Michael Burry warned that rapid and uncontrolled inflation, also known as hyperinflation, is waiting to begin. exchanges could not cope with the demand during e was forced to shut down. Burry compared this to the Wallstreetbets movement, which saw Robinhood's trade with certain assets to cease. Before German hyperinflation in the 1920s, 'everyone from the elevator operator to the market' and volumes became such that 'the financial sector just couldn't keep up with the paper'.

Join the Discussion

  • BrokerEUR/USD
    InterTrader 0.6pips (fixed) margin: 3.33%
    SpreadEX 0.6pips (variable) margin: 3.33%
  • Back to top