Despite hopes that the worst part of the inflation period was over, the May’s CPI out at 1% month-on-month and 8.6% year-on-year. This is the highest level since 1981. Estimates had predicted only half the increase.
Bad news for the Bitcoin price
The wildly high inflation is bad news for traders with risky assets. This is because it means that interest rates will be raised and more and more people will take their money out of risky assets and put it in their bank.
However, not everyone is panicking. Renowned analyst WhalePanda wrote on Twitter:
“Dumping your Bitcoin because inflation is higher than expected is one of the dumbest things you could ever do”he wrote.
Anthony Pompliano, co-founder of Morgan Creek Digital, described U.S. monetary policy as “undisciplined” of recent times. He called inflation a “national crisis”.