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[romero121]

The cryptomarket is supposed to grow against the inflation due to its limited supply, but here the market is experiencing the downturn as the inflated currencies. The inflation keeps rising and it has come out big all of the sudden as people have started to move after a long term work from home. During those time period the food price rise didn't make a big impact. By the time the transportation too is limited and now everything is getting to be normal and the impact is getting high. It is a slow process to get solved. More countries will join the queue soon.

[hatshepsut93]

Monthly inflation instead of the forecasted 0.7%, reached 1%. This news caused a dump in the crypto market, bitcoin is again trading near the $29,000 mark

I thought Bitcoin is the greatest hedge against inflation ever? The last year's bull run happened because companies declared that they will buy BTC to protect themselves against inflation. So why isn't Bitcoin growing now?

My theory is that Bitcoin simply moves in speculative cycles - when a critical mass of investors buy, it creates hype and the price gains momentum and grows incredibly fast, then when the market runs out of new buyers, the process reverses and we have a bear market. The news don't really matter, they can be interpreted to fit either scenario. If Bitcoin goes up while there's inflation and turmoil in the world, people say that Bitcoin is a hedge and a reserve asset. If it goes down while those thing happen, people say that Bitcoin is a risk asset and it's normal for it to be also bearish.

[Z-tight]

The administration has largely denied that the trillions of dollars directed toward Covid aid played a major role.

The quote above is a snippet from the news, who believes this? I think they are trying to deny the obvious, that the printing of huge amounts of money and all of the policies for covid-19 control and aid is the major cause of this extremely high inflation level, it is obviously not the only cause, but it has a major role to play. It was predicted to happen, concerns were raised when the government kept on printing money, but from the situation now, they were anything but ready for the consequences in inflation.

Monthly inflation instead of the forecasted 0.7%, reached 1%. This news caused a dump in the crypto market, bitcoin is again trading near the $29,000 mark

Why do you think this news is directly the cause of the dump in bitcoin. Bitcoin has been down for many weeks now, and has been moving around the $29,000 mark to slightly above $30,000.

[Hispo]

I hope the best for the people, the common working people of the United States.

As a Venezuelan, I can asure the inflation is not to be understimated, it can cause permanent pain and losses to the working class families of any society. I do not live in the United States, but I have seen some news on internet suggesting that politicians may not be taking this subject with the seriousness one should expect from them.
Could please someone from USA corfirm or deny that for me?
_______________________________________________________________________________ _____________
Also, I will leave here a typical graph that shows how inflation have been hehaving here during the recent years, for the sake of context.

Source: https://sites.krieger.jhu.edu/iae/research-programs/special-topics-venezuela/
_______________________________________________________________________________ ______________

If it is actually true that US government is not taking care of this in a proper way, I'd suggest you to cut your unnecesary expenses as much as possible and be wary in case some foreshadowing red flags appear, perphaps even move onto cheap vegetal protein-rich food, to save money...

[adaseb]

Yeah when those CPI numbers came out and shortly ETH started to dump, I knew today was going to be the day it broke the yearly low and it did. The yearly low was $1700 and it’s still below that figure.

8.6% doesn’t differ too much from the last 2 results but the fact that it rose 1% in a single month when the normal rate is 2% for the entire year is very worrying. Most likely 75bps rate hikes on the next fed meet.

[Sithara007]

During the last 2 years, the M1 and M2 money supply for United States Dollar went up by 150%. And then people don't understand why the inflation rate is going up. Well... it is not rocket science. COVID presented a perfect excuse for the central banks around the world, to print unlimited amount of money. A small portion of this money ended up with the ordinary people, just to make them happy. But the vast majority of this money was distributed among the most unproductive sections of the society, such as the unions and pressure groups.

[Fortify]

Annual inflation in America reached 8.6%, a record high for the past 40 years: Inflation rose 8.6% in May, highest since 1981

- The consumer price index rose 8.6% in May from a year ago, the highest increase since December 1981. Core inflation excluding food and energy rose 6%. Both were higher than expected.

- Surging food, gas and energy prices all contributed to the gain, with fuel oil up 106.7% over the past year.

- Shelter costs, which comprise about one-third of the CPI, rose at the fastest 12-month pace in 31 years.

- The rise in inflation meant workers lost more ground in May, with real wages declining 0.6% from April and 3% on a 12-month basis.

Monthly inflation instead of the forecasted 0.7%, reached 1%. This news caused a dump in the crypto market, bitcoin is again trading near the $29,000 mark

While it is a shock to the system and is going to be very damaging for the average person if it persists over many years, it's easy to forget that other countries like Turkey are claimed to be suffering something like a 50% real inflation rate. The longer such rates stick around the worse things can get because people seek raises of the same amount which pushes the cost of goods and services up even higher. It becomes a vicious cycle, but the world economy is looking very dysfunctional right now - the Ukraine war is really not helping.

[be.open]

"We’ve never seen anything like Putin’s tax on both food and gas".

[KingsDen]

The cryptomarket is supposed to grow against the inflation due to its limited supply, but here the market is experiencing the downturn as the inflated currencies.

There are two side to the story:
1. Bitcoin is supposed to grow against inflation due to its limited supply. And it has happened and used to happen. People who noticed that their assets are depreciating due to inflation tends to move to Bitcoin to fight against inflation.

2. Inflation affects all sector of the economy including Bitcoin itself directly or indirectly. In an economy where the inflation rate is very high, people will only struggle to survive and might have nothing left to invest. This affects Bitcoin and other cryptocurrencies.

But in the above scenario, an announcement from US stock is not supposed to have an immediate impact on bitcoin, I could not relate that. It could be a fast decline to colorate with the news or a mere coincidence.

[Wind_FURY]

Jerome Powell would have to do his own Paul Volker moment, and tell everyone to "tighten their belts", and raise interest rates higher than initially planned to control inflation. It will a be hard landing, there is currently no other choice but to swallow the truth that everything should be crashing down before it can surge up. Depleted savings, mass lay-offs, business/banking collapse, simply the whole set of what should happen after euphoria MUST happen. A recession.

[Findingnemo]

First of all the number should be higher than officially reported by government then we see the declining in the cryptocurrency market instead of hike because people in need of cash so they will be ready to sell everything they have got and cryptocurrency is easily turned to liquid cash compared to other assets.

[so98nn]

Nothing surprising here considering the fact that whole world is suffered with after party of covid. The blame now is on war and there is bigger partition of US in supporting the same and in the process they are loosing import tenders from different countries. Most of the money left Share market as peeps are in need of money for even basic daily needs. The US situation in terms of jobs is also not very well and most of them are seeking low wager jobs for time being. Many things go undocumented. The inflation will keep rising if situation persisted like above further the time.

[Moneyprism]

it seems America should focus on its own country's economy and not need to meddle in other countries' affairs...if only the US government allocated the money they send to Ukraine or to Taiwan for their economic recovery, I think it's better and will help the citizens those who are already struggling to live

[Captain Corporate]

I am not entirely sure what this means for even bigger FED interest rate increases. I mean the inflation is high, the money is withdrawing, its the typical playbook for recession right at the door as well. We are going to live through a time where we will see a ton of people who are going to be unable to pay debt, which will be a big problem and then we are going to end up with a ton of banks and other business' not doing so well anymore since people default, and this isn't just loans, I mean business deals done that failed to be paid in full, all of these will end up with the economy being quite terrible in the short future.

[Gyfts]

The cryptomarket is supposed to grow against the inflation due to its limited supply, but here the market is experiencing the downturn as the inflated currencies. The inflation keeps rising and it has come out big all of the sudden as people have started to move after a long term work from home. During those time period the food price rise didn't make a big impact. By the time the transportation too is limited and now everything is getting to be normal and the impact is getting high. It is a slow process to get solved. More countries will join the queue soon.

The entire market is down, not just crypto. USD is at a 40 year inflation high, we don't know how Bitcoin is supposed to coincide with inflation quite yet during a time where the U.S. economy is on the verge of recession. Most investors don't know where to put their money so you need to give it more time before making conclusions.

Seems a bit unfair IMO that Bitcoin is taking so much critique as if during a period of stagflation crypto should be the only asset to rise in a market where every asset is doing poorly.

[philipma1957]

I hope the best for the people, the common working people of the United States.

As a Venezuelan, I can asure the inflation is not to be understimated, it can cause permanent pain and losses to the working class families of any society. I do not live in the United States, but I have seen some news on internet suggesting that politicians may not be taking this subject with the seriousness one should expect from them.
Could please someone from USA corfirm or deny that for me?
_______________________________________________________________________________ _____________
Also, I will leave here a typical graph that shows how inflation have been hehaving here during the recent years, for the sake of context.

Source: https://sites.krieger.jhu.edu/iae/research-programs/special-topics-venezuela/
_______________________________________________________________________________ ______________

If it is actually true that US government is not taking care of this in a proper way, I'd suggest you to cut your unnecesary expenses as much as possible and be wary in case some foreshadowing red flags appear, perphaps even move onto cheap vegetal protein-rich food, to save money...

Well Venezuela inflation rates are huge crazy big rates. 18000 is really high.

USA at 8.6 is not good and it does hurt the regular person.

My car would fill up at 35 bucks it now fills at 70 bucks.

Jumbo Eggs were 1.79 a dozen now 3.89 a dozen

I would order quality raised lamb steak cut from a leg of lamb for 9 dollars a steak.
They are now 19 dollars a steak.

So I order a lamb roast which is fatty in comparison but cheaper.

Do political leaders care?
Connecticut suspended gasoline tax  until Jan 1
New York suspended gasoline Tax a month later Until Jan 1
New Jersey is making us pay the tax and no relief.

So three states and 2 did something while one did nothing.

[kryptqnick]

As a person who lived most of my life in a country with a pretty volatile economy and some years of very high inflation (like 40% high), I think that most people won't notice the 8.6% inflation. First of all, it doesn't directly translate into the same price growth. Secondly, it can be a bit corrected by increasing salaries. Thirdly, you are unlikely to notice a change like that, not unless you're already from a very vulnerable group and barely made ends meet.
The pandemic hit the economy hard, the economy which was predicted to get an economic crisis around 2020-2021 before the pandemic started. Then the sanctions, tens of billions of dollars to Ukraine are of course also impacting it. But I think the question should not be about the economy growth declining and inflation rising. It should be about the moral responsibility to stop a crazy genocidal war that brings pain and suffering to so many people and is likely to affect even more people due to things like Russia blocking the sea and Ukrainian grain being unable to thus reach the countries that heavily rely on it.

[Leviathan.007]

Unfornetly the inflation rate is rising every time when a special event comes up like the war between Ukraine and the Russian government and sometimes it raising just for no reason and because of the printing of money by the government. During the last days and weeks when it was below 8 many government fans were saying the governments will think of a way to make everything better and it's 8.6. Regarding the inflation rate, we know it's raising long term but I think it's not all and it's not just rising long term because if you compare it with the last years you will understand when the speed of inflation rasing rate is increasing, in this situation the only way to save the people is to let them invest on assets like bitcoin and stay safe from the inflation.

[Hispo]

-snip-

Do political leaders care?
Connecticut suspended gasoline tax  until Jan 1
New York suspended gasoline Tax a month later Until Jan 1
New Jersey is making us pay the tax and no relief.

So three states and 2 did something while one did nothing.

I am quite impressed by the fact you are spending double only on fuel already, that is quite a blow.
And I thought eggs were cheaper there than here, we buy 30 regular eggs for 5$.

And when I asked about measured taken by government to relieve the inflation (or the effects of it on populance) I meant anything done nation-wide, maybe some measured taken by the federal government?

I have seen some news here and there but I don't have quite a good picture of the situation yet.
Last time I checked USA was one of the leaders on crude oil extraction on the planet and you had relatively zero oil exports, then I am not quite sure what is going on? Did you stop drilling or something? Are Exxon, Shell, Texaco speculating with these near 6$/gal prices for ther sole benefit?

Also, I am aware that the situation between our countries is different I would not expect USA to face a 5 figure inflation I just wanted to give some context to those who were not quite familiarized with the magnitude of the inflationary phase here.