Whether you call bitcoin a hedge against (extreme) monetary inflation or argue that it simply goes up with increasing central bank liquidity as many other assets do is up to you.
Currently, the Fed is hard on the brakes and with that is dampening bitcoin’s price.
But worry not. Three things are certain in life:
- And ever-increasing monetary intervention by central banks
It is just a matter of time before the interventionist spiral of central banks turns back on. Once the Fed pivots or hints at a pivot it is time for bitcoin to shine again.
Tomorrow, Wednesday, July 13, 2022, at 8:30 A.M. Eastern time, the US CPI numbers for June will be released. On Monday, the White House has already communicated that they expect headline inflation to be highly elevated
(for whatever reason). According to a poll by Reuters,
Economists expect year-over-year inflation to come in at 8.6% for June.
I wouldn’t be surprised if numbers come in a bit higher. If the numbers come in hot, expect more volatility to the downside, which would give further reason for the Fed to continue tightening (less liquidity -> price pressure).
Also upcoming on Friday, July 12, 2022, at around 8:30 A.M. Eastern time is the US Advance Monthly Sales for Retail Trade and Food Services for June. This can give us some indication of how the US consumer and US economy are doing.
Stay safe out there! Don’t trust! Verify! Make up your own opinion and consider multiple sources.
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