UK core inflation hits 28-Year high, boosting Bitcoin adoption as safe haven

UK core inflation hits 28-Year high, boosting Bitcoin adoption as safe haven
фото показано с : cryptoslate.com

2023-5-24 14:15

The United Kingdom’s core inflation reached 6.8% in April, its highest level since 1992, as CryptoSlate reported in a recent insight. This surge in inflation has occurred alongside a backdrop of declining interest rates for over 40 years, which has inflated asset bubbles across the board.

Core inflation represents the fluctuation in the cost of goods and services, excluding items within the food and energy sectors. It remains more persistent than overall headline inflation, as the U.K. experienced its most constricted labor market in more than 25 years, with an unemployment rate under 4%.

Core Inflation: (Source: Trading Economics)

The rapid increase in core inflation has led to skyrocketing bond yields, breaking a 40-year trend line for 10-year government bond yields. This has raised concerns about the consequences for the financial markets, primarily as debt levels have surpassed 100% of GDP. In this context, examining the potential impact of the U.K.’s accelerating inflation on the cryptocurrency market, specifically Bitcoin (BTC), is crucial.

Source: Trading Economics Inflation uncertainty pushing Bitcoin adoption

Throughout the past year, investors have preferred Bitcoin over fiat currencies in times of uncertainty. For instance, Turkey’s lira has continuously declined since 2018, with cumulative inflation surpassing 100% over the past three years. This devaluation prompted Turkish investors to diversify their assets, significantly increasing BTC/TRY trading volume.

Similarly, the British pound experienced a flash crash on September 26, 2022, losing 4.3% of its value against the U.S. dollar in a single day. Bank of England’s emergency intervention in the bond market led to a record-breaking BTC/GBP trading volume, soaring over 1,200% in just 24 hours.

These examples indicate a growing trend among investors worldwide: in times of macro uncertainty, inflation, and debased fiat currencies, Bitcoin is increasingly perceived as a safe haven.

Leveling the playing field on volatility

Given the U.K.’s skyrocketing core inflation, investors in the region may adopt a similar approach, turning to Bitcoin as a hedge against rising consumer prices. This shift could boost BTC trading volume and overall interest, particularly among investors seeking to protect their wealth from dwindling value.

The mounting volatility in fiat currencies, primarily driven by inflation, could effectively equalize the field regarding the traditionally perceived volatility of cryptocurrencies. Consequently, the distinction between the stability of traditional currencies and the fluctuations of digital assets is becoming less pronounced, reshaping how investors perceive and approach both financial realms.

Ultimately, the rapid rise in the U.K.’s core inflation serves as a reminder of the potential role Bitcoin can play in providing a relatively stable store of value in uncertain economic climates. If investors increasingly turn to digital assets like BTC amid mounting inflationary pressures, the Bitcoin market may experience growth and rising prominence within the global financial ecosystem.

The post UK core inflation hits 28-Year high, boosting Bitcoin adoption as safe haven appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Core Group Asset (CORE) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 CORE

inflation core declining board backdrop occurred surge

inflation core → Результатов: 40


Stellar ends inflation of XLM with latest protocol upgrade

Stellar has successfully completed its scheduled Protocol 12 upgrade, effectively disabling inflation for the network’s cross-border payments-focused crypto, Stellar Lumens (XLM). The Stellar Development Foundation (SDF), the non-profit that spearheads the development of Stellar, proposed three “Core Advancement Proposals” for the upgrade when they announced it at the start of October—modifications that were put into […] The post Stellar ends inflation of XLM with latest protocol upgrade appeared first on CryptoSlate.

2019-10-30 10:11


U.S. Treasury Yields Continue to Surge as Mnuchin Considers “Dangerous Temptation”

U. S. government debt yields rose on Thursday after core inflation exceeded analysts’ estimates, signaling that the economy is performing better than previously feared. The inflation report seemed to strike a delicate balance on Wall Street: Firming expectations about the domestic economy without compromising the Federal Reserve’s plans to lower interest rates next week.

2019-9-13 00:00


V SYSTEMS ICO

V SYSTEMS is a native blockchain database and decentralized app platform that aims to create a brand new digital economy era. The project is led by chief architect, Sunny King, the legendary blockchain developer and creator of Proof of Stake (PoS), who initiated the first PoS project with Peercoin and was also the creator of Primecoin.

2019-3-6 16:04