Rising Inflation Attracted More Investors to the Cryptomarket
Recently, investor interest in Bitcoin has grown significantly, especially after the sharp rise in inflation in the United States and around the world.
In October, the consumer price index (CPI) rose 6.2% over last year. Co-creator & Board member Diem, David Marcus, said that if inflation holds for another 10 years, then by the end of this period, $ 100,000 will turn into $ 54,800.
Investor fears of runaway inflation and loss of purchasing power have negatively impacted traditional financial markets. On the other hand, the cryptocurrency market saw a surge in bullish momentum, thanks to which Bitcoin grew by 4.7%.
Cryptocurrency holders have a unique chance to capitalize on the current state of the market compared to fiat holders, as the devaluation of the dollar has only underlined the strength of Bitcoin and other altcoins during inflation.
According to Bitcoin Stimulus, Americans who invested $ 1,200 in April 2020 in BTC will now have $ 12,172 worth of BTC as Bitcoin has grown 914% since then.
In addition, the entire market felt a significant influx of funds that raised the total market capitalization from $ 190 billion to $ 2.95 trillion over the same period.
In general, cryptocurrency market participants have also benefited from the protection offered for holding assets that rise in value as the purchasing power of fiat currencies deteriorates. This process is unlikely to slow down in the foreseeable future, especially if the inflation rate continues to rise.