Crypto and the consumer price index (CPI)
Some question Bitcoin’s store of value and its potential to act as a hedge against inflation when looking at the CPI.
But the graph shows that if there is any correlation between the CPI rising and Bitcoin’s price, it is negative. If consumer prices increase, Bitcoin’s price usually falls. The same holds for the entire digital asset space.
When people are faced with price increases on the items they need the most, there’s less disposable income available to them.
Given necessities like buying food and paying your energy bills tend to rank higher in priority than Bitcoin and other cryptocurrencies, it’s normal for people to reduce spend on cryptocurrencies and their exposure overall to digital assets.
