Inflation is Eating the World

Inflation. That’s all anyone seems to be talking about this week after US headline CPI came in at a whopping 9.1%, topping every economist’s estimate Bloomberg tracks.

Everyone knew CPI was going to be high, but few expected it to be that high – the market’s reaction was evidence of this. As expected, equities and crypto moved in tandem, continuing their strong correlation streak.

Quick aside – it is interesting how BTC has fully recovered from its post-CPI dip while equities are still lagging. Two days certainly don’t make a trend but it’s notable how seemingly bad news is having less of an adverse impact on price. Something to watch for going forward…

Bitcoin’s initial price drop following the CPI release triggered a resurgence in memes mocking those who put their faith in bitcoin as an inflation hedge.

For those who thought BTC would save them from higher consumer prices, it’s been a rough year.

Joe Weisenthal, host of Bloomberg’s Odd Lots podcast and frequent Bitcoin critic, got in on the action too. Per usual, he didn’t mince words.

“Probably one of the biggest narratives to get blown up generally in this year has been this idea that Bitcoin would prove to be a good inflation hedge. That’s dead and buried.”

Bitcoin is Not an Inflation Hedge

It’s easy to point fingers in hindsight. But to be fair, these detractors have a good point (whether they know it or not). There’s an important difference betw