Financial Insights That Matter
New Consumer Price Index (CPI) values — a number important for tracking inflation in prices that consumers are paying — released by the United States Bureau of Labor Statistics indicated a 3% increase over the last 12 months.
For January exclusively, the increase in the CPI was 0.5%.
Despite bitcoin (BTC) often being marketed as an inflation hedge, its relationship to inflation is more complex than that. Today, BTC has fallen approximately 1.6% according to data from CoinMarketCap.
Read more: Price of eggs rising faster than bitcoin in Trump’s America
However, if you “zoom out” for the total year that this inflation data represents, BTC has increased by approximately 97%, a much larger increase than the relative devaluation of the dollar.
Ethereum, for its part, has seen its price fall approximately 2.5% today but an increase of 3.5% over the last year. This is surprisingly close to the change in the value of the dollar.
It’s important to note that this value doesn’t include the increase in ether you could accumulate by staking.
TRUMP, the memecoin affiliated with the current president, has also performed poorly on these inflation numbers, falling over 5% today and down approximately 80% from highs.
These assets suggest that more things than just inflation drive the price of cryptocurrency assets.
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