The United States Bureau of Labor Statistics released its February 9th statistics reportedThe Consumer Price Index is a crucial measure that tracks the changes in the price of goods and services. It has seen the largest year-on year increase since 1982. The indicator was 1.8% in 2019, just before the outbreak of the global COVID-19 pandemic. Such a sharp rise in inflation makes more and more people consider the old question: Could , the world’s largest cryptocurrency, become a hedge asset for high-inflation times?

What’s up with the inflation spike?

Ironically, the fundamental reason behind the unprecedented inflation spike is the U.S. economy’s strong health. The American economy was reenergized immediately after the COVID-19 crises, in which 22 million jobs were lost and the national economic output suffered a significant decrease.Remarkable recoveryAfter the relatively successful vaccination campaign. However, the supply chain seemed unprepared to handle such rapid returns of consumer demand and business activity.

Bitcoin as the “new gold”

Hedge over time