Bitcoin Booms as Inflation Slips: Get Your $12 Bonus Now!
• Bitcoin prices rose slightly in mid-May after inflation data showed potential signs of easing.
• The consumer price index report shows inflation is now just under the five percent mark.
• During the crypto winter of 2022, bitcoin lost more than 70 percent of its value and dropped from $68,000 to $16,600.
The Inflation Problem
Regions like the U.S. and the U.K. have been subjected to the highest inflation seen in roughly 40 or 50 years. Things like gas prices, food prices, and the costs of other goods and services have risen tenfold over the past year or so, making it harder for people to use their money positively.
Inflation May Be Easing Up
The consumer price index report shows that inflation is now just under the five percent mark – a slight decrease from what many analysts and economists expected. Callie Cox – an analyst at investment firm e-Toro – stated that bitcoin has outperformed the S&P 500 on five out of six CPI days with today’s gains. Steven Lubka – managing director at Swan Bitcoin – also commented that lower inflation supports the case for rate hikes ending soon which started off crypto winter over a year ago.
A Year of Suffering in Crypto Winter
During crypto winter in 2022, bitcoin lost more than 70 percent of its value and fell from its all-time high of $68,000 to about $16,600 due to Federal Reserve hiking rates as a means of combating inflation. Furthermore, altcoins suffered much tension throughout this period as well due to tight liquidity conditions caused by rising rates taking serious tolls on prices everywhere across crypto markets.
Bitcoin Reacts Positively To Lower Inflation Rates
With current news showing potential signs of easing up when it comes to inflation data; Bitcoin reacted positively with slight increases in mid-May despite still being subjected to weak leaders and financial tactics effecting economies worldwide such as hiking rates and causing people’s inability to afford cars and homes anymore .
It appears that although we are not yet out of woods yet when it comes economy crisis caused by inflated prices; lowering rates may be a relief for cryptocurrencies such as BTC & Altcoins who have suffered heavy losses during crypto winter 2022 due to raising interest rates hindering people’s ability put their money into good use .