Although Bitcoin has tended to enjoy a little uptick when grim inflation figures are released, the world's biggest cryptocurrency remained pretty static when the data emerged on Thursday.
The U.S. Consumer Price Index rose 7.9% year on year in February — setting a fresh 40-year high — in the latest sign that inflation may be here to stay.
But although Bitcoin has tended to enjoy a little uptick when grim inflation figures are released, the world's biggest cryptocurrency remained pretty static when the data emerged on Thursday.
All of this might be linked to concerns about geopolitical tensions in eastern Europe — as well as the prospect of an interest rate rise from the Federal Reserve next week. Meanwhile, the European Central Bank has warned that it will be turning off the money taps earlier than planned.
This could further damage the narrative that BTC is a hedge against inflation. With quantitative easing increasing the supply of dollars and eroding their value, enthusiasts say Bitcoin has value because the maximum supply has been set at 21 million.
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At the time of writing on Friday, BTC and ETH are flat over the past 24 hours — with both down about 5% on the week.
Speaking to CNBC, Janet Yellen suggested that inflation could remain "uncomfortably high" for another year — hurting American households when they pay for their groceries and gas. The Federal Reserve's target for inflation is normally 2%.
Similar inflationary effects are being seen in other major economies too, including the U.K.