$ETH

Shocking inflation data and low consumer confidence... What is its impact on Bitcoin?

According to Odaily, the U.S. economic data for May came in higher than expected on inflation and weaker on consumer confidence:

Annual inflation rate:

7.3% (higher than the expected 6.5% and previous reading of 6.5%)

Inflation expectations for 5-10 years:

4.6% (higher than the expected 4.4%)

Consumer confidence index (University of Michigan):

50.8 points (lower than the expected 53.4 and previous point of 52.2)

What do these numbers signify?

High inflation means that price pressures are ongoing, which may keep the U.S. Federal Reserve hawkish.

Declining consumer confidence reflects market concerns and the possibility of reduced spending, which may impact economic growth.

The impact on crypto?

Ongoing inflation may boost investor appetite for alternative assets like Bitcoin as a store of value.

However, on the flip side, potential tightening of monetary policy could restrict liquidity and negatively affect high-risk assets.

My opinion in brief:

The market is at a crossroads... and Bitcoin could benefit if investors lose confidence in traditional financial system instruments.

And you... do you think high inflation serves Bitcoin in the long term?