Can Bitcoin Overcome Inflation Fears?

The US Consumer Price Index (CPI) reached a new four-decade high in November at 6.8%, confirming what market experts have been calling all along.

Asian and European markets have been decrease nowadays in the early morning in advance of the data release and the US government's plans to introduce new measures to include the damage.

The important motive for the upward jab in inflation was once the printing of unused money by using governments round the world, and conditions have been similarly worsened by using the epidemic.

During the first coronavirus wave, the normal and cryptocurrency markets at the start declined, however later Bitcoin and altcoins found a foothold and grew exponentially.

Bitcoin has left gold behind to become the developing preference of inflation hedge amongst institutional and retail investors alike.

In fact, the coronavirus played a principal function in institutional adoption of Bitcoin at the establishing of this year.

The mutant "Omicron" alternative to COVID is beginning to frighten the ordinary markets, and market specialists predict some other hard quarter for the monetary markets.

Can Bitcoin Overcome Inflation Fears?

The majority of market professionals trust that inflation will kill every market inclusive of the cryptocurrency market.

However, crypto proponents point out otherwise, with many crypto market analysts predicting a rally in Bitcoin and other cryptocurrencies in the first quarter of 2022 as December became bearish as soon as again.

Even when the typical market slipped, Bitcoin and altcoins shortly recovered as soon as the CPI statistics used to be launched yesterday.

Bitcoin fee jumped to $49,000 from a day by day low of $47,236, Ethereum charge additionally recovered above $4,000 after falling under $4,000 at the establishing of the day.

At the time of writing, Bitcoin has consolidated similarly above the $48,000 level, but the bearish fashion used to be extra dominant in the market especially after the launch of the CPI data.

Currently Bitcoin is looking to consolidate and regain some bullish momentum as the new year approaches.

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