Crypto market expects recovery ahead of key US inflation data release

Rising inflation has become a growing problem for nations around the world, particularly the United States.

The United States saw one of the largest spikes in consumer inflation over the past year. Lawmakers around the world have claimed they didn’t see inflation coming, but people often turn their attention to the obvious onslaught of unhindered money printing during the pandemic.

In 2021 alone, the United States printed 35% of the total US dollar in circulation, which has played a key role in the inflation balance.. Market experts expect the consumer price index (CPI) to rise by 6% in November, which would be its highest value in four decades.

Crypto market expects recovery ahead of key US inflation data release
Crypto market expects recovery ahead of key US inflation data release

CPI statistics are due to be released on December 10th.

The Biden administration has said the spending program and $ 1.85 trillion tax cuts would curb the impact of inflation, but experts are skeptical of the idea of ​​printing more money.

Real money stock M1 1959-2021. Source: Federal Reserve Bank of St. Louis

Asia Pacific and Europe markets opened cautiously and declined across the board. The Japanese Nikkei 225 was down 1% to 28,437.77. South Korea’s Kospi fell 0.64% to 3,010.23 while the Kosdaq fell 1.1% to 1,011.57. The pan-European stock index STOXX 600 lost 0.4%, while technology, retail and healthcare stocks also posted losses.

Asia Pacific Markets December 10, 2021. Source: CNBC

The cryptocurrency market has seen a small rally since last night, contrary to the usual decline in traditional markets. Bitcoin (BTC) price rebounded above $ 48,400 after falling to a daily low of $ 47,358, while Ether (ETH) also rebounded above $ 4,100 after a low of $ 4,026. The total market capitalization of the cryptocurrency exceeded $ 2.25 trillion.

With rising inflation and the panic-causing Omicron variant in traditional markets, Bitcoin could rise again as an inflation hedge.

Robert Kiyosaki, author of “Rich Dad Poor Dad” and businessman, warned of “collapse and depression” of incoming market due to “false inflation”. Kiyosaki blamed the Feds and the Biden administration for pressuring people with false inflation.

FED Biden urge FALSE INFLATION. Collapse and depression come. Gold, silver, bitcoin and real estate will also collapse. Ready to buy more gold, silver, bitcoin and real estate after the crash. It’s time to get richer after fake inflation errors. Be careful. Watch out.

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