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Visualizing Inflation CPI Data Vs The Price of Bitcoin: Inflation Hedge?

by CryptoDataDownload


Inflation Changes vs Price of Bitcoin

We have graphically overlaid the releases of CPI (Consumer Price Index) from the Bureau of Labor and Statistics (BLS) against the price of Bitcoin over the last 2 years. For some time now, the narrative around Bitcoin has been that "Buying Bitcoin" is akin to an inflation hedge --> In periods of increasing inflation, the price of Bitcoin should respond positively to higher prices as it implies the value of the USD is decreasing over time (via that inflation).

Our Observations

Bitcoin price depreciated (fell) on days following the release of CPI starting in November 2021. This pattern continued fairly consistently and occurred on every monthly release through July 2022 as CPI y/o/y readings climbed from 6.2% to 9.1%. In July though, the reaction in price was bullish at the near term lows. Is the Bitcoin cryptocurrency market implying that CPI may have peaked over the short term? Time will only tell. We will keep the chart updating and also update CPI as releases go on.



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Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Author does not own the any crypto currency discussed. The information and content are subject to change without notice. CryptoDataDownload and its affiliates do not provide investment, tax, legal or accounting advice.

This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by CryptoDataDownload is not an endorsement whatsoever. CryptoDataDownload was not compensated to submit this article. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.
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