Bitcoin bulls have long claimed the cryptocurrency is an inflation hedge. But recent price swings have challenged that idea

Posted On: Jun 12, 2021   |   Posted By: Business Insider

Bitcoin bulls have long claimed the cryptocurrency is an inflation hedge. But recent price swings have challenged that idea

Summary List Placement Fears of rising inflation came to a head on Wednesday when key data came in significantly higher than economists expected. Bitcoin, touted by some of its biggest supporters as an inflation hedge - because it has a finite supply, unlike the dollar - didn't rise in response. It instead slumped around 7% on the day.
Headline inflation data as measured by the Consumer Price Index rose 4.2% year-over-year in April, the fastest rate since 2008, while core inflation rose 0.9% in the largest monthly increase for the core index since 1982. The Dow shed nearly 700 points Wednesday.
Meanwhile, alleged inflation hedge bitcoin dropped below $50,000 to its lowest level in nearly three weeks.
The day that inflation fears hit a boiling point would have been bitcoin's time to shine as the hedge against devalued, government-backed money its supporters claim it to be. With its fixed supply of 21 million bitcoin, the cryptocurrency is meant to protect against reckless central bank policy and helicopter...

Continue reading ...

 






The last Posts from Business Insider



What channel is the Westminster Dog Show on today? Time, TV schedule for...

What channel is the Westminster Dog Show on today? Time, TV schedule for 2021 competition

The 145th running of the Westminster Dog Show is set to continue on Saturday and Sunday with group competitions and the Best in Show judging. Here's how to watch and follow... Read more ...

Saudi Arabia limits annual pilgrimage due to Covid

Saudi Arabia limits annual pilgrimage due to Covid

DUBAI, United Arab Emirates - Saudi Arabia announced Saturday this year's hajj pilgrimage will be limited to no more than 60,000 people, all of them from within the kingdom... Read more ...

Putin Offers Views on 'Colorful' Trump, 'Career Man' Biden

Putin Offers Views on 'Colorful' Trump, 'Career Man' Biden

President Biden is set to meet with Vladimir Putin on Wednesday in Geneva, and the Russian leader prepped for that sit-down with an NBC News interview on Friday, offering his... Read more ...

Sri Lanka seeks initial $40M from cargo ship's operator

Sri Lanka seeks initial $40M from cargo ship's operator

Sri Lanka sent a claim of $40 million to lawyers representing X-Press Feeders, the ship's operating company, to cover a portion of the funds of fighting the cargo ship fire. Read more ...

What channel is UFC 263 on tonight? How to watch, buy Israel Adesanya vs...

What channel is UFC 263 on tonight? How to watch, buy Israel Adesanya vs. Marvin Vettori 2 on pay-per-view

Sporting News has you covered on how to watch the rematch between Israel Adesanya and Marvin Vettori on Saturday. Read more ...

LEADING OFF: deGrom, Scherzer get checked after early exits

LEADING OFF: deGrom, Scherzer get checked after early exits

A look at what's happening around the majors today: Read more ...

Suns spoil Nikola Jokic's MVP party, beat Nuggets 116-102

Suns spoil Nikola Jokic's MVP party, beat Nuggets 116-102

DENVER - Devin Booker and the Phoenix Suns spoiled Nikola Jokic's MVP celebration with a 116-102 victory over Denver on Friday night in Game 3 that put “The Joker” and the rest... Read more ...

Seized House Records Show Just How Far Trump Admin Would Go

Seized House Records Show Just How Far Trump Admin Would Go

Using the Justice Department to gather private information about members of Congress carried echoes of Nixon during Watergate. Read more ...

LEADING OFF: deGrom, Scherzer get checked after early exits

LEADING OFF: deGrom, Scherzer get checked after early exits

A look at what's happening around the majors on Saturday: Read more ...

Comeback kids: Verdugo, Red Sox rally from 4 down in 9th

Comeback kids: Verdugo, Red Sox rally from 4 down in 9th

Alex Verdugo had three hits to lead the Red Sox to their major league-best 23rd comeback victory of the season. Read more ...