Inflation Is About to Spike Once Again, Bitcoin Holders Move Their Assets off CEX Platforms
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We have the latest data about inflation in the US and it looks grim. The core inflation is up 0.6% this month and 4.9% up compared to the same period one year ago. It seems that the inflation is only speeding up despite what the Federal Government has been talking about recently when saying that there is no recession in sight. Some positive metrics are personal income (+0.3%) and spending (+0.4%). However, spending increases could be provoked by the acceleration of price growth for goods, energy, and utilities.
The sharp drop in gasoline pricing did not help even an iota with inflation seeming to be unchecked by any measures employed by the government.
Bitcoin is doing fine amidst this inflation craze
It is unlikely that the US dollar will lose its value considering how important it is right now for international investors who are running away from the British Pound and Chinese Yuan to invest in the US economy. It already happened before and signaled the beginning of the 2008 financial crisis. With other indicators of the soon-to-unravel recession in sight, we can safely assume that keeping your money in fiat is not the best of strategies.
Cryptocurrencies are designed to be stronger against inflation and offer many investors a way to hedge against fiat currencies that are being eaten alive by rapid recession and uncertainty. People are losing faith in their national currencies across the globe with more and more regular people turning their heads to BTC and ETH in countries like Venezuela, Peru, Kenya, and Nigeria.
One reason why BTC continues to hold on to its $19K price right now when everything else is losing value is that so many people are using it and have faith that BTC is simply more resilient than many fiats.
34,000 BTC were moved off crypto exchanges
Not necessarily an indication of “hodlers” moving their funds from exchanges to cold storage, but it is still a big number meaning that some people are simply taking their tokens off custodial platforms and prefer to hold them somewhere else. It signals that users look at Bitcoin as a store of value that could survive through the next financial crisis.
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