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Cryptos Look Like Go-To Place To Hedge Against Inflation

Published 04/13/2021, 11:51 AM
Updated 07/09/2023, 06:31 AM

One glance at the Slope CryptoStream page will illustrate what is becoming apparent: the go-to place to hedge against inflation is cryptocurrencies. Years ago, it was gold, but precious metals have been utterly left in the dust. As I am typing this, some red-hot inflation CPI numbers came through, and Bitcoin futures are up 5.3%. Gold futures are up about one-third of a single percentage point.

Cryptocurrenies Table.

Those who talk about Bitcoin at $100,000 or $500,000 – or a million – may be absolutely right. Here, let’s play the “Spot the Trend” game with Bitcoin futures over the past few months:

Bitcoin Daily Chart.

With this morning’s mult-thousand-dollar price jump, BTC has finally reached escape velocity, after struggling for weeks.

Bitcoin Chart.

And, naturally, everything else is coming along for the ride.

Etheruem Chart.

Oh, and just to keep things in perspective, with what the Fed’s trillions have foisted upon all of us, here is a long-term arithmetic glance of the king of cryptos:

Long-Term Bitcoin Chart.

So can Fed Chairman Jerome Powell actually say with a straight face that there isn’t inflation anymore? What a farce!

Latest comments

Silver, crypto, and gold in that order
no they don't. it will collapse lol
crypto is not immune to inflation, it might even performs worst than stocks when the inflation kicks in, with all this fomo, people will be panic selling as crypto doesn't really any real value. it is just a game of who is the greater fool.
Profits Saham Receh sirik are lo.. Lo gak tau kan Orang tetep bisa makes off of Profits saat Red Days dgn Short Selling
more like the capital flight of choice
To the contrary, I think when inflation really kicks in, countries are going to be pressured to pull the plug on cryptos entirely, to bring down the price of energy and semiconductors, which are currently being diverted to proof-of-work computations. I think there is a very real risk this will happen, which reduces cryptos' usefulness as a hedge.
For once We cant disagree with Tim knight. Bitcoin to $150,000 and GBTC to $160, thought its still passimistic to us, Both has piwer to exceed those levels super fast. Bitcoin is the new safe heaven
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