Inflation Accelerates, Bitcoin Price Will Go Down

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Today, we saw yet another acceleration in the United States Consumer Price Index for the month of February with data coming in line with consensus expectations at 7.91%. Previously, we expected inflation to potentially peak in Q1 while remaining elevated for the rest of the year but that scenario is looking less and less likely as the surge in commodities and energy prices are now taking over.

Even if it has little material impact on bringing prices down, the Federal Reserve and other central banks are in a position where they are now forced to try and aggressively tighten monetary policy to maintain any integrity or illusion of their price stability goals.