Cryptocurrency

Prior to the release of key U.S. inflation data, the crypto market focused on recovery

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Increasing inflation has become an issue of increasing concern to all countries in the world, especially the United States.

In the past year, consumer inflation in the United States has risen the most. Lawmakers all over the world claim that they have not seen inflation coming, but people often focus their attention on the seemingly unlimited money printing frenzy throughout the pandemic.

In 2021 alone, the United States printed 35% of the total dollar in circulation, which played a key role in record inflation.Market expert Expected The Consumer Price Index (CPI) rose by 6% in November, which will be the highest level in 40 years.

Estimated CPI statistics Released on Friday.

The Biden administration has stated that the $1.85 trillion spending plan and tax cuts will slow Reduce the impact of inflation, but experts have been skeptical of the idea of ​​printing more money.

The real M1 currency stock from 1959 to 2021. source: St. Louis Federal Reserve Bank

The Asia-Pacific and European markets opened cautiously and plunged across the board. Japan’s Nikkei 225 Index fell 1% to 28,437.77. The South Korean Kospi index fell 0.64% to 3,010.23, while the Kosdaq index fell 1.1% to 1,011.57. The pan-European stock index STOXX 600 fell 0.4%, while technology, retail and healthcare stocks also recorded declines.

Asia Pacific markets, December 10, 2021. source: NBC Finance Channel

Contrary to the general decline in the traditional market, the cryptocurrency market rebounded slightly from last night. Bitcoin (Bitcoin) price Recovered more than USD 48,400 After falling to a daily low of $47,358, the ether (Ethereum) Also Recovered more than USD 4,100 After hitting a daily low of $4,026. The overall cryptocurrency market value climbed to more than $2.25 trillion.

As the inflation rate rises and omicron variants cause panic in the traditional market, Bitcoin can be used as an inflation hedging tool to rise again.

Robert Kiyosaki, author Rich dad poor dad A businessman himself warned that due to “false inflation”, the upcoming market “crashed and depressed”. Kiyosaki accused the Federal Reserve and the Biden administration of imposing false inflation on people.