Microstrategy CEO has warned that inflation might be worse than we think and that Bitcoin is better than we know
Michael Saylor’s comments come after CPI data for March showed that inflation in the US was at 8.5%
8.5% is the highest gain in annual inflation since 1981 (41 years)
Bitcoin’s current inflation rate stands at 1.7%
Bitcoin continues to be a hedge against inflation
Microstrategy CEO and Bitcoin permabull Michael Saylor has warned that the state of inflation is worse than we think. He also added that Bitcoin might be the solution to hedge against the said inflation. Mr. Saylor shared his analysis on inflation and Bitcoin via the following tweet.
March CPI Data Shows an 8.5% Increment in Inflation in the United States
Mr. Saylor’s comments on the state of inflation were made moments after it was announced that March’s Consumer Price Index in the United States was at 8.5%. This is the highest annual gain in the CPI in the US since December 1981.
According to CNBC, March’s CPI data was a percentage point above estimates, and real earnings (6.5% higher from a year ago) were not keeping pace with the cost of living. The lack of wages keeping up with the cost of leaving could continue to worsen the financial burden on Americans.
Bitcoin’s Inflation Rate Currently Stands at 1.7%
At the same time, the Co-founder and Chief Technology Officer at Glassnode, Rafael Schultze-Kraft, retweeted an analysis he shared mid-last month that shows that Bitcoin’s current inflation rate stands at 1.7%. According to his research, Bitcoin’s inflation rate ‘continues to follow its preprogrammed, fully predictable downwards trajectory’.
Bitcoin Continues to Prove it is the Best Hedge Against Inflation
His analysis of a BTC inflation rate of 1.7% is proof that Bitcoin is the best hedge against inflation, given that the current annual inflation in the United States at 8.5% is the highest it has been in over 40 years.
Concerning the price, Bitcoin is attempting to convert the $40k price area into support after setting a local low of $39,200 late yesterday. Since late March, the King of Crypto has been on a downward trend after hitting the $48k resistance zone. Bitcoin’s weakness in the markets can be attributed to an advanced ‘market feeling’ that the CPI data would be high for the month of March.
Bitcoin bulls are now tasked with defending the $39k to $40k support level failure, which might open the doors to $37k or lower before April comes to a close.