The buzz around a potential Bitcoin (BTC) ETF dominating discussions isn’t surprising. Market participants eagerly anticipate the approval of a spot Bitcoin ETF, anticipating it to propel the entire crypto market to new heights, especially with increased accessibility for more tightly regulated financial institutions.
However, recent reports from financial services firm Matrixport hinted at a possible rejection of all Bitcoin ETF applications by the United States Securities and Exchange Commission (SEC) this month. This led to a sudden 10% drop in Bitcoin’s price within three hours on Jan. 4. Despite this setback, Bitcoin ETF discussions remain at the forefront, prompting investors to reflect on some of crypto’s original ideals.
The focus on the Consumer Price Index (CPI) and inflation marks a return to the fundamental roots of the crypto movement. Bitcoin emerged as a response to the inherent flaws of a monetary system that perpetuated exploitation and the creation of artificial value. It was a rebellion against fiat currency systems enabling unchecked money printing by nation states.
The crypto community has consistently brought these issues to the forefront. The 50th anniversary of President Richard Nixon removing the US from the gold standard in August 2021 reignited discussions within the crypto sphere. This pivotal decision unleashed inflationary pressures and uncoupled net productivity from hourly compensation rates.
Notably, Bitcoin’s genesis block embedded a headline that mirrored the concerns of banking mismanagement and fractional reserve practices, underscoring its intent.
Today, the crypto community highlights the pitfalls of the current economic structure, pointing to rising consumer prices and inflationary pressures. The 12-month CPI change, as reported by the United States Bureau of Labor Statistics, indicates an average 3.1% increase in prices, with significant variations across sectors. Meanwhile, the U.S. Inflation Calculator suggests a significant 18.6% inflation since 2020, translating to an increased cost of $118.6 for an item that was $100 in 2020.
Amidst these discussions, the crypto community emphasizes Bitcoin’s potential not only as a store of value but also as a hedge against rapid inflation. The belief persists that Bitcoin could serve as a safeguard against the erosive effects of inflationary pressures on traditional currencies.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
