Bitcoin (BTC) remains stable while US inflation rises to 7.91 percent year on year. The Consumer Price Index in the United States for February was in line with predictions, but it demonstrates the harmful effects of a long-term expansionary monetary policy. The Federal Reserve is now attempting to tighten monetary conditions in order to prevent the currency from depreciating every month.
Bitcoin is still trading between $38,000 and $41,000, despite the fact that inflation in the United States exceeded 7.91 percent year over year in February. This demonstrates how monetary policy intended to assist people and businesses in navigating quarantines ended up causing a slew of additional issues in the economy.
Every single product’s price is rising these days, with energy being one of the most affected industries. It’s also worth remembering that Russia’s invasion of Ukraine has had a significant impact on the price of gas and energy.
Meanwhile, Bitcoin inflation remains at 1.75 percent per year, with a weekly decrease. Let’s not forget that inflation will be considerably lower following the next halving event.
The total supply of Bitcoin is at 21 million. This is in contrast to fiat currencies like the US dollar, which can be produced as needed by politicians. Other countries’ domestic currencies are also affected.
Inflationary pressures from throughout the world are also putting downward pressure on Bitcoin’s price. We haven’t seen Bitcoin dip below $30,000 since the year 2021 began. This indicates that the coin’s price was able to remain stable. Governments all around the world have been creating massive sums of money for various reasons, resulting in greater inflation rates.
It’ll be crucial to keep an eye on what the Federal Reserve does in the following months. The European Central Bank (ECB) and local central banks in other nations are in the same boat. Despite Russia’s recent invasion of Ukraine, Bitcoin continues to draw investors.
Related Posts – Ferrari joins the NFT universe through a collaboration with a Swiss…