Home
News
- Crypto market shows some recovery from last weekend’s flash crash
- The prices in the crypto market bounce following the key US inflation data release
- It seems like the Bitcoin price will again receive a boost as the inflation hedge
Crypto market has seen notable growth amid the global COVID-19 pandemic. Many consider these assets as true inflationary hedge that helps protect our hard earned funds as the government continues to print money. This weekend the entire digital assets market had faced a flash crash after the flagship cryptocurrency lost more than $10k overnight. However, ahead of the key US inflation data release, the virtual currencies are seeking to recover.
Idea of printing money is skeptical
Growing inflation across the globe has been concerning several nations. The United States is one of the nations that has witnessed the sharpest spike in consumer inflation amid the global pandemic. According to Lawmakers across the globe, they didn’t see the inflation coming. However, individuals often have drawn their attention towards the seemingly unrestricted money printing spree throughout the pandemic.
It is significant to note that the nation has printed 35% of its current circulating dollars since the beginning of this year itself. Hence, printing of dollars at such a pace has played a vital role in record-breaking inflation.
Financial market pundits expect a 6% rise in the Consumer Price Index (CPI) last month. This could be the highest over the past four decades. However, the stats on the CPI were released on Friday, and has shown a 6.8% increment. Following the scenario, the Biden administration highlighted that the $1.85 trillion spending program and tax cuts would slacken the effects of inflation. However, experts are yet skeptical regarding printing more money.
Crypto market witnesses minor bounce back
Following the release of data, the crypto market showed a minor bounce back over the past 24-hours. Notably, according to experts the actions came in contrary to the common decline in the traditional financial market. It has been observed that the Asian Pacific and European markets open with caution and recorded a wide decline across the board.
As different categories of stocks recorded a loss, Bitcoin price managed to surpass the level of $48,400 from its daily low of $47,358. Besides the leading cryptocurrency the most popular altcoin Ethereum also recovered above $4,100 from its daily high of $4,026. And the overall market capitalization of the digital assets market inclined over $2.25 trillion.
Bitcoin price could boom again
According to analysts and experts in the cryptosphere, with soaring inflation and the spread of omicron variants across the globe has generated panic in the traditional financial market. Following the scenario, it seems like the Bitcoin price will again receive a boost as the inflation hedge.
