Bitcoin faces an important week, with inflation figures from the Netherlands, the US and China

The year 2022 will be characterized by inflation and the response to it by central banks. Unfortunately for us, we’re a long way from that and it looks like the bear market is still a long way off. Another measurement moment is scheduled for next week, because all kinds of countries will announce the inflation figures.

A week of inflation

We kick off the week on Tuesday morning at 6.30 am Dutch time with our own inflation. The previous reading came in at the extreme number of 14.5 percent. For now, inflation is expected to come in at 14.4 percent. In that regard, there is still little positive movement, despite the fact that the ECB has already raised interest rates to 2 percent. However, who would have dared to predict a year ago that the Netherlands would currently have an inflation of 14.5 percent.

Most people were not aware of any harm. In that regard, this episode of inflation may well be good advertising for Bitcoin in the Netherlands. Bitcoin has an absolute scarcity of 21 million units and is therefore naturally resistant to inflation. Some people will say that Bitcoin is currently failing as a protection against inflation, but we have to see what happens after the flight to the US dollar.

We cross the Atlantic Ocean

Speaking of the US dollar, let’s cross the Atlantic to the United States, where we will get the new consumer price index (CPI) on Thursday afternoon. The previous reading came in at 8.2 percent and this time the expectation is 8.3 percent. Core inflation is also still high at 6.6 percent, and it is expected to come in at 6.5 percent. Core inflation is the inflation rate minus food and energy.

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Which in itself is a strange way to measure inflation, because food and energy are quite important. Strangely enough, this metric is favored by the Federal Reserve. So they mainly look at these figures to determine whether things are going in the right direction.

China will also publish its consumer price index next week on Wednesday 9 November at 2.30 am. The previous one came in at 2.8 percent and the next one is expected at 2.5 percent. Then on Friday at 08:00 it will be Germany’s turn, the previous one was 11.6 percent and the expectation for this one is also 11.6 percent. Overall, there is still little improvement, which is not a good thing for Bitcoin.

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