Bitcoin price explodes while America loses control over inflation

Bitcoin price exploded today based on yesterday's US inflation data They will expect the opposite. What is the market telling the US Fed on this?

“Shame on you! You can't lower inflation, you have to cut interest rates sooner, while the 2.0% target is still not met.

The US government and central bank seem to be losing control of inflation and that could have major consequences for the financial markets. Let us analyze this situation carefully.

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'The central bank is cheating'

A pseudonymous analyst KKGB Kitty says on Twitter: “America is no longer a free market economy. Neither Trump nor Biden are supporters of the free market. They are both interventionists. Their policies are effectively the same because they try to limit the free market.

One does it through massive spending and subsidies, while the other excels at protectionism. Both of these populist agendas will cause further inflation in the future.

The US Federal Reserve is the ultimate anchor. If the central bank loses its grip on inflation expectations, and they appear to have already lost their credibility in the market, the risk of higher inflation increases.” Thus KKGB kitty.

Indeed, Kitty here paints a terrifying picture for the American economy. In theory, this is very favorable for the price of Bitcoin, but it also creates a very uncertain future.

If the US government and the Fed do not control inflation, what will be left of society? If money is not stable, it will be a very scary situation.

What does this mean for the price of Bitcoin?

This is very suitable for Bitcoin price. If the US government and central bank lose control of inflation, people will lose faith in the dollar en masse (with all the consequences).

Then they all have to look for a form of deficit that can protect them from inflation. Bitcoin is definitely a more attractive endpoint. Spot Bitcoin in particular is welcoming billions of dollars a day in new capital following the influx of ETFs.

Can Michael Saylor be proven right with his “Bitcoin Goldrush”? MicroStrategy's CEO Predicts Ten-Year Bitcoin Gold Rush to Begin in January 2024

A bull market that will last until 2034. That was the year when 99 percent of bitcoins were put into circulation by miners. After that, new Bitcoin production by miners is no longer significant, according to Michael Saylor, who predicts a gigantic Bitcoin price spike based on the above scenario and his “Bitcoin Goldrush” scenario.

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