US CPI data for March came in at a hotter than expected 3.5%. This rise is not good for markets generally, and most indices were down. However, after an initial fall, bitcoin has held support and is currently at $70,000. The accumulation period for $BTC continues.
Inflation hedge?
Bitcoin has often been talked about as an inflation hedge, but thus far this has generally not held true. However, things have changed in this bitcoin bull market. Traditional markets are now in bitcoin, and if institutions perceive that bitcoin is indeed that hedge, the self-fulfilling prophecy can come to pass.
Inflation is stealing wealth
With all this said, a higher Consumer Price Index does not give the environment for most assets to thrive, and does not bode well for future interest rate cuts. The Fed’s mantra of 2% inflation becomes further off, and perhaps interest rates need to stay higher for longer.
The Fed’s balancing act has also become a whole lot more difficult. On the one side
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