According to a recent report issued by the U.S. Bureau of Labor Statistics, a 3.2 percent rise in the Consumer Price Index (CPI) occurred last July. This is a primary metric when tracking inflation, and the number suggests inflation has jumped for the first time in more than a year.
Inflation is Going Up
This means one of several things, a big one being that we’re still not out of the woods yet when it comes to economic issues. Prices are still going up, and everyday shoppers are feeling the heat everywhere they go, from grocery stores to gas stations. Inflation hasn’t left us, and it’s not likely to vanish completely for some time.
However, it also means that bitcoin could still be the big “safe haven” it’s been promoted as over the past several months. The dollar in America has been suffering, as have several forms of fiat currency, and inflation has a lot to do with this. Could it be that bitcoin is suddenly projected into the region of standard money? Could we finally see a day where BTC is widely accepted at stores and businesses around the world when it comes to purchasing both goods and services?
Analyst Austin Arnold commented in a recent video:
This is also the first month-to-month increase in a year, telling us that the Fed’s best efforts, despite how hawkish they’ve been, inflation’s sticky, and for the first time in over a year, we turned back up a little bit. To me that says, man, the Fed’s going to have to stay hawkish longer, keep being aggressive longer. If the Fed’s being aggressive, that brings gravity to markets.
One of the big benefits of bitcoin is that it’s not influenced by an exterior party or government. It’s truly in the hands of the people, which is what would prevent inflation and some of the same economic issues that strike fiat currency from hitting BTC. Arnold continued with:
Bitcoin will boom when people realize, ‘Oh, we need a type of store of value, a type of money that has a set monetary policy,’ and that’s really the other reason why I think bitcoin will boom. Not only because of inflation, because of the changing monetary policy that exists in the United States. Numbers like this are often bearish for markets. For bitcoin, there’s no better marketing (than) saying, ‘Hey, we have a mathematical monetary supply that you’re going to know.’
BlackRock is Really Paving the Way
He was also quick to mention how the SEC and related agencies are suddenly warming up to specific companies (i.e., BlackRock) that now want to enter the crypto industry. Arnold said:
You’re going to see Larry Fink of BlackRock go on TV and talk about how bitcoin isn’t being inflated away.
