US Inflation Hit A 40-Year High: How Will This Impact The Price Of Bitcoin?

As per the reports, US inflation hit a 40-year high which is a multi-decade high last month. The Bureau of Labor Statistics reports that the Consumer Price Index for All Urban Consumers (CPI-U) rose 9.1%. Due to inflation, the crypto market is unregulated, and investment in cryptocurrencies or tokens is speculative. Many traders have lost their investments, and experts urge anyone exploring crypto to be prepared to lose it all.

Brett Sifling, a crypto investment advisor for Gerber Kawasaki Wealth and Investment Management said, “The fed is committed to curbing inflation with aggressive rate hikes, which continues to make lower risk securities that produce yield more and more attractive. This shift in liquidity promotes volatility and extreme price movements in risk-on assets. Bitcoin continues to get more correlated to growth/tech equities, which don’t do too well in this environment”. 

US Inflation Hit A 40-Year High: How Will This Impact The Price Of Bitcoin?

Brett Sifling anticipated speculative assets like cryptocurrency will tighten under inflation and low liquidity. The CEO and co-founder of a cross-chain asset management dashboard, DeFiYield also states that with the Consumer Price Index (CPI number) coming in higher than expected, he thinks that most are anticipating an even more aggressive response from the Federal Reserve.

Even though some investors predict that the crypto market will bounce back from this crash within the next few months. Dileep Seinberg, founder and CEO of MuffinPay, bill payment, and utility token predicted, “I strongly think that crypto will rise again. By August 2022, the bloodbath and bitcoins4cards.com crypto winter should be over. By December end of January 2023, Bitcoin may rise to an all-time high of $70,000. Few strong reasons besides geopolitical uncertainties are Crypto becoming recognized for its purpose and utility. Government regulations are going to be key drivers later in the year”.

Following this prediction, several economists said future significant events won’t affect Bitcoin’s price. Once the stock begins to move upwards, the crypto market will find a convincing bottom. Micheal Rosmer warned that the Fed’s rate hikes could destabilize the credit markets. Rosmer said that it does seem certainly possible for Bitcoin to hit $15,000 or lower and he suspects that the macro environment will shift here rather dramatically. “The Fed will likely have to back off tightening and perhaps even ramp up quantitative easing again in the not-too-distant future”, Rosmer added.