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Current US inflation data is causing great turmoil and panic within some market sectors. Following the reporting of inflation data, various expectations and reactions have emerged. It seems true that even crypto space is affected by inflation and other macroeconomic factors.
When Report The US Bureau of Labor Statistics has given different opinions to different markets. However, according to the data released, the consumer price index has risen 9.1% since June last year. This value exceeds expectations from some analysts.
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However, Binance CEO Changpeng Zhao (CZ) seems to have the opposite opinion about the published inflation data.according to CZ Binance9.1% inflation is magically low for some surrounding events.
Changpeng Zhao said that by increasing the casting of banknotes, the supply of US dollars increased by 80%, which is five times the original supply. Therefore, inflation is expected to be around 500%. In CZ terminology, such calculations should be entirely dependent on the increase in funding over a particular period of time.
Twitterati has swiftly provided corrective action for the signs of Changpeng Zhao’s inflation data. To further explain, the calculation of inflation needs to take into account various supply and demand factors. You also need to consider that the money supply stays within a certain period of time.
With the release of inflation data, Bitcoin fell below $ 19,000 in just a few minutes, declining its value. Unfortunately, BTC is not the only one moving downwards. Other traditional stocks such as the S & P 500, Nasdaq and Dow Jones plunged with the resulting high inflation data.
The wider crypto market has been thrown considerably as inflation continues to increase over the years. This impact will significantly destabilize market value until the first half of 2022. Since then, the market has plummeted by more than 70% since the beginning of the year, threatening many companies to go bankrupt.
Prior to the release of inflation data, market consensus forecasts a June CPI of 8.8%. The forecast was 0.3% lower than the US Bureau of Labor Statistics report.
The more prominent personalities in crypto space are also responding to high inflation. These include Michael Saylor, Tyler and Cameron Winklebos. In their opinion, high value has advanced the current situation of BTC and has facilitated the adoption of a wider range of cryptography.
As the inflation flag warns in red, it indicates a sharp rise in interest rates due to the Federal Reserve. This trend is a big negative for the entire crypto ecosystem.
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Bitcoin has been very unsuccessful as lending rates have risen. Its poor performance has also lowered the crypto market.
Featured image from Flickr, chart from Tradingview.com
