Record-high inflation and Bitcoin with a new All Time High!
During the pandemic, the money printer went berserk, increasing the dollar supply by 35% in only 18 months. Initially, the FED stated that there will be no inflation but shortly after the U.S "Central bank" changed its mind noting that the inflation will be "transitory". Despite the FED's positive overview, it seems that the inflation is here to stay.
Last week U.S. Bureau of Labor Statistics' report showed that the inflation is higher than expected – 6.2% year-over-year and 0.9% month-over-month. The current CPI is the highest it has been since October 1990, signifying the highest inflation in 31 years.
Necessities such as Food, electricity, shelter and gas have all seen price hikes. Food is up 5.3% year-over-year, gas – 6.1% from last month, electricity is up 1.8% in a month and many other goods and services are also seeing a price increase.
Despite the high numbers, the FED continues to relay its message that inflation is "under control" and prices are high due to supply chain issues. However, if we keep the inflation of 6.2% steady, for 10 years your $100,000 will be worth only $54 800.
By any standard Bitcoin has cemented itself as a better hedge against inflation, compared to gold. The leading cryptocurrency increased in price hitting a new ATH at almost $69 000.
The price of Bitcoin increased dramatically over the last 12 months and according to Bitcoin Stimulus, Americans who put their $1,200 stimulus check from April 2020 into BTC, would now have approximately $12,000. At the time of writing, Bitcoin is changing hands at around $65,405.
Circle launched Circle Ventures
This year has been a smashing success for crypto fundraising. USDC issuer, Circle, launched Circle Ventures. The Circle's hand will invest in early-stage crypto projects, new technologies, and protocols to help them grow and become an important part of the crypto ecosystem.
Earlier this year, Circle raised $440M from strategic investors like Digital Currency Group, Valor Capital, and crypto exchange FTX.
Apple CEO Tim Cook has Crypto
At the New York Times DealBook Online Summit, CEO of Apple Tim Cook said that he personally owns crypto. "I think it's reasonable to own it as part of a diversified portfolio," he stated, adding that his investment is not financial advice.
Despite his choice, Cook confirmed that Apple doesn't hold any digital assets and has no intention of adding any to its balance sheet. However, as a head of the second most valuable company in the world, Cook's crypto position is important for many businesses.
Even if it seems like Apple is not looking into crypto as a hedge against inflation, many Business Intelligence companies, the most notable of which is MicroStrategy, have already accumulated portions of Bitcoin.
Militsa Dimitrova is a crypto enthusiast with experience in content creation & social media, who produces her own Cryptocurrency Newsletter and Podcast both in English and Bulgarian. She joined FXCM as an Accountant in 2020, after obtaining a Bachelor's degree in Accounting from the University of National and World Economy of Sofia.