As we enter the new year, it has become clear that the main agenda item for 2022 will be high inflation. The price increases and low purchasing power, which are also felt in Turkey, continue to be discussed all over the world.
Although proportionally incomparable to Turkey, the USA is struggling with the highest inflation in the last 39 years.
The increases in energy and food prices on a global basis in December caused inflation data to be quite high. In our country, while the December inflation rate was 13.58%, we completed the year 2021 with 36.08%.
Global markets and Bitcoin also focused on inflation data from the USA. US December consumer inflation will be announced on Wednesday this week at 16:30.
Both cryptocurrency investors and other market participants will be watching this data closely.
Inflation data is considered an important leading indicator, as it is the main determinant of central banks’ monetary policies.
While the rapid increase in inflation fuels the concerns that the FED will tighten monetary policy sooner than expected, we see that the avoidance of risky products continues.
Although high inflation initially reflected negatively on Bitcoin due to possible changes in monetary policy, Bloomberg stated in its latest report that the demand for Bitcoin by institutional investors who want to be protected from high inflation may increase and that Bitcoin may emerge victorious from this war.
Bitcoin may experience sharp fluctuations between the protection shield it creates against high inflation and the interest rate weapon of the FED.
2022 looks like it will be an important test year for Bitcoin, which has its eyes on gold.
*Not investment advice.