Inflation shoots through the roof and Bitcoin marks new all-time high

The new inflation figures from the USA were published at 2:30 p.m. CET. With inflation of 6.2 percent compared to October 2020, consumer prices have risen faster than they have been since 1990. Bitcoin’s reaction was not long in coming. The digital gold was able to mark a new all-time high just a few minutes later.

Immediately after the announcement of the highest inflation rate for three decades in the USA, there was a sharp rise in the price of the digital reserve currency Bitcoin. The BTC all-time high (USD 68,642) from yesterday November 9th was cracked at 3:15 p.m. With currently 68,776 US dollars, Bitcoin investors can look forward to a new all-time high. Its market capitalization is a whopping $ 1.29 trillion. Worldwide there are only seven assets that are more highly capitalized.

Inflation is not temporary

The assumption of many critics of the current central bank policy that inflation is not a temporary phenomenon is thus reinforced. It is no longer just energy prices that are skyrocketing. The supply chain problem now affects countless industries. As a result, more and more investors are feeling insecure and the demand for inflation protection is growing.

In addition to gold, Bitcoin is also traded as a possible protection against inflation. The limited offer of a maximum of 21 million BTC can score points with many investors who want to save their money from inflation, especially at these times.

Bitcoin benefits from central bank policy

Even if the American central bank FED has already announced that it will counteract the high inflation by means of so-called tapering, the situation is unlikely to change for the time being. Once inflation is up and running, it is usually difficult to get it back under control.

Since we are lagging somewhat behind the inflation dynamics in the USA in the euro zone, the figures for euro consumer prices are also likely to rise. Inflation in Germany is currently 4.5 percent. The new figures from the USA suggest that we too will be above 5 percent in the next consumer price reports. Savers and investors with high cash holdings are the big losers from the current high inflation. Real assets such as stocks, real estate, precious metals and even crypto currencies such as Bitcoin should therefore continue to benefit from the great inflation or flight from monetary values ​​for the time being.

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