- US consumer price surged 7.5% year-on-year in January, pressuring Fed Reserve to stiffen policy.
- Historically, BTC has seen extended upswings amid rising inflation.
- As inflation spikes, experts expect US Fed to increase interest rates hostilely.
- Analysts believe Bitcoin will climb to $48,000 amid many market catalysts.
Bitcoin (BTC) enthusiasts consider the crypto an inflation hedge. For now, investors await Fed Reserve’s action to the surging inflation. The uptick in the United Stated consumer price fueled concerns on Fed’s response.
Bitcoin Might See Continued Gains amid Surging Inflation
United States consumer prices gained 7.5%, the highest growth speed in 40 years. Meanwhile, this surge added pressure on Fed to tighten monetary policy. Remember, Federal Reserve’s reaction to the economic situation might affect investor sentiment on BTC and the overall crypto market. Although the core CPI (Consumer Price Index) experienced a 0.6% surge, a similar pace as 2021 December, inflation noted a material increase.
Market players consider BTC an inflation hedge due to its limited supply. Inflation had catalyzes extended BTC gains as investors turn to $BTC amid uncertain times.
Experts expect the US Fed to increase interest rates aggressively more than previous predictions. Recently, Federal Reserve revealed interest rate increases starting in 2022 March. Meanwhile, enthusiasts believe Fed’s response to surging inflation fueled the crypto market recovery over the past fourteen days. While some individuals see the idea of BTC being an inflation hedge as a theoretical one, Prosper Trading Academy CEO Scott Bauer believes it partially backed the latest rally by Bitcoin.
A cryptocurrency trader and analyst @FeraSY1 trusts BTC can surge towards $49K if it keeps the $38,758 mark away. The expert observed a bear divergence on BTC’s 4Hr candlestick, contemplating an Inverse Head-Shoulders pattern, forecasting a surge following the bearish bias. Also, FXStreet experts remain bullish on Bitcoin, predicting a move to $50K after a tumble.
For now, analysts predicted extended gains for Bitcoin. The positive narrative emerged after a 7.5% climb in US consumer prices. That accounted for the fastest jump since 1982. Bitcoin has historically noted extended upsurges amid surging inflation.