Among the many reasons Bitcoin turned bullish in 2020, was primarily due to the sudden fear of inflation caused by unprecedented money printing. Each new round of stimulus money resulted in yet another massive rally in the cryptocurrency, helping fuel its rise from $3,000 to over $34,000.
Inflation expectation has been in decline ever since the Great Recession concluded, but the metric just broke out from a nearly decade long downtrend that began when Bitcoin was born. Will rising inflation fears keep the cryptocurrency’s price climbing long term?
Inflation Fears Run Amok, Could Cause Bitcoin FOMO To Pick Up Pace
Ever since the Great Recession, central banks have relied on quantitative easing to give the economy a shot in the arm. Each time this is done, however, the total circulating fiat money supply consisting of dollars, euros, yen, yuan and more, begins to inflate.
And as inflation occurs, the buying power of that money decreases. The normal 2% inflation