Crypto market eyes recovery ahead of key US inflation data release
Growing inflation has become a mounting concern for nations around the world, especially the United States.
The U.S. has seen one of the sharpest rises in consumer inflation over the past year. Lawmakers around the globe have claimed that they didn’t see the inflation coming, but people often draw their attention towards the seemingly unrestricted money printing spree throughout the pandemic.
In 2021 alone, the U.S. has printed 35% of the total U.S. dollars in circulation, which has played a key factor in record-breaking inflation. Market pundits expect a 6% rise in the consumer price index (CPI) in November, which would be the highest in four decades.
Statistics on the CPI are scheduled to be released on Friday.
The Biden administration has said that the $1.85 trillion spending program and tax cuts would slow down the effects of inflation, but experts have been skeptical about the idea of printing more money.
Asian Pacific and European markets opened with caution and recorded a broad decline across the board. Japan’s Nikkei 225 declined 1% to 28,437.77. South Korea’s Kospi fell 0.64% to 3,010.23 while the Kosdaq was down 1.1% at 1,011.57. Pan European stock index STOXX 600 was down 0.4% while technology, retail and healthcare stocks also recorded a loss.
The crypto market saw a minor bounce back from last night, contrary to the common decline in traditional markets. Bitcoin (BTC) price recovered above $48,400 after falling to a daily low of $47,358 while Ether (ETH) also recovered above $4,100 after recording a daily low of $4,026. The overall crypto market cap climbed above $2.25 trillion.
With rising inflation and the omicron variant inducing panic in the traditional markets, Bitcoin can rise again as the inflation hedge.
Robert Kiyosaki, the author of Rich Dad Poor Dad and a businessman, himself, warned of the incoming market “crash and depression” due to the “fake inflation.” Kiyosaki blamed the Feds and the Biden administration for pushing the fake inflation on people.
FED & Biden pushing FAKE INFLATION. Crash and Depression coming. Gold, silver, Bitcoin, real estate will crash too. Ready to buy more gold, silver, Bitcoin, real estate after crash has crashed. Time to get richer after fake inflation crashes. Be aware. Take care.
— therealkiyosaki (@theRealKiyosaki) December 9, 2021