Forget Inflation: Bitcoin Rallies When The Dollar Falls, Study Finds
According to NYDIG research, Bitcoin’s price moves are driven more by the strength of the US dollar and broad liquidity conditions than by direct ties to inflation. Greg Cipolaro, NYDIG’s global head of research, said the data show weak and inconsistent links between inflation measures and Bitcoin. That view shifts attention away from the old narrative that Bitcoin is mainly an inflation hedge. Related Reading: XRP: The Catalyst For ‘Humanity’s Greatest Shift’ By 2030 —Analyst Inflation Link Weak Cipolaro argued that expectations for inflation are a slightly better signal than headline....
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CPI inflation data exceeded market expectations, maintaining a near 40-year high of 8.3% as bitcoin falls below its $30,000 line of support.
Across multiple economic downturns and bear markets, gold has proven to be a haven for investors worldwide, with many traders and investors opting to invest in it to protect their capital against value depreciation, which occurs from inflation, causing an increase in general prices. Because gold prices are related to the US dollar value due to gold being dollar-denominated, a stronger USD keeps the price of gold down and more controlled. A weaker USD drives the gold price higher due to increasing demand. Ultimately this means that more gold can be purchased when the dollar is more....
Despite the risks that come with storing crypto assets with third parties, the findings of a new study suggest many cryptocurrency holders still trust exchanges with the safekeeping of their funds. Conducted by Binance Research, the study finds that 60% of “the general population store their cryptocurrencies on an exchange.” In contrast, 26% of the respondents use cold wallets and only 11% are using hot wallets. Security of Funds Remain a Key User Concern Dubbed the 2021 Global Crypto User Index, the study’s findings “are based on a global survey issued to over....
As inflation rips through Argentina’s economy, the nation appears to be turning its gaze toward cryptocurrencies as a financial haven. Particularly, with inflation soaring to as high as 276% per year, according to a report, Argentina is now witnessing a massive turn in the monetary strategy as citizens chase after stability, even if it comes […]
August CPI inflation data was worse than expectated and the markets repriced in response. Bitcoin falls more than 10% and the S&P 500 closes down 4.3%.