Cryptocurrency
First Mover: For Bitcoin Prices, Inflation Headlines May Matter More Than the Reality
As reported by Coindesk, “Bitcoin traders love to talk about inflation – especially the possibility consumer prices might eventually shoot up due to the trillions of dollars of new money injected into global markets this year by the Federal Reserve and other central banks. “The theory is the purchasing power of government-issued currencies will diminish due […]
As reported by Coindesk, “Bitcoin traders love to talk about inflation – especially the possibility consumer prices might eventually shoot up due to the trillions of dollars of new money injected into global markets this year by the Federal Reserve and other central banks.
“The theory is the purchasing power of government-issued currencies will diminish due to the surging supply of money, and that should be good for bitcoin, viewed by many cryptocurrency investors as a hedge against inflation.
“Such arguments have helped to boost price for bitcoin, which traded Monday around $7,700, up 7.8% on the year. The performance looks especially impressive when compared with the Standard & Poor’s 500 Index of large U.S. stocks, down 11% in 2020…”