The Consumer Price Index (CPI), a measure of the prices of consumer goods and services, rose at an annual rate of 5% last month, hitting its highest level since August 2008, according to the report. US Bureau of Labor Statistics.
As money printing and federal economic stimulus measures continue in the wake of the COVID-19 pandemic, this measure indicates that US dollar inflation is at its highest level since the Great Recession, leading to tangible concern on the part of investors.
“Fears of higher prices in the US have gripped markets, as investors fear pent-up demand and supply chain bottlenecks will create inflationary pressures, forcing the Federal Reserve’s central banks to slow down their stimulus programme.” Watchman mentioned. Core inflation, which strips out volatile items such as food and energy, jumped to its highest level since 1992. It rose 3.8% year over year, up from 3% in April.
Introduced by the direct opening up of the Great Recession, Bitcoin is designed to solve many of the problems currently rearing their heads in the ancient financial system. The supply of bitcoin is predetermined, and it is issued in a programmed and tamper-free manner by third parties, such as the Federal Reserve. As such, it cannot be inflated like the dollar currently.
Concerns about inflation are driving many people to invest in Bitcoin as a way to better protect their wealth. This current economic trend appears to be setting the stage for another crisis of major recession proportions, something that Bitcoiners have been feeling for some time.