Medley Global Advisors’ Ben Emons discusses BTC price action as the Consumer Price Index (CPI) reaches a 40-year high of 8.5%. Emons explains bitcoin’s connection to inflation and the idea of “digital inflation,” noting the economic impact of rising gas prices.
The consumer price index, due out tomorrow morning, is expected to show inflation in February ticked up to 8% versus a year ago, a fresh four-decade high.
The Consumer Price Index (CPI) data for January released Thursday revealed prices have climbed 7.5% over the past year, the fastest pace since 1982. “The Hash” panel discusses the report and what this means for bitcoin as a potential hedge against inflation.
Bitcoin traders keep track of the inflation rate because some think of the cryptocurrency as an inflation hedge, and the Federal Reserve's expected response to economic conditions often dictates market direction.