Investors Scoop Up 70,000 BTC Before Key US Inflation Report

Ahead of the US inflation report, investors have snapped up 70,000 Bitcoin, betting on its strength as a hedge against economic uncertainty.

This surge in BTC buying comes on the heels of a massive 1 million BTC sell-off at the end of 2023, marking a renewed confidence among long-term holders. The move highlights a strategic shift towards cryptocurrency amidst fears of rising inflation and the diminishing value of fiat currencies.

On-chain data from Glassnode indicates a deliberate and strategic accumulation of Bitcoin, reflecting investor faith in its stability, especially as it holds above $60,000.

The US Consumer Price Index (CPI) climbed 0.4% in March, hitting 3.5% over the past year—well above the 0.8% inflation rate a decade ago. With the Federal Reserve unlikely to cut rates, the May 15 inflation report has investors bracing for more economic volatility.

Neil Bergquist, CEO of Coinme, underscores Bitcoin’s fixed supply of 21 million BTC as a major draw. “Bitcoin’s supply is hard-coded and immutable, making it an inflation-resistant asset unlike fiat currencies,” he explains.

Core inflation, excluding volatile food and gas prices, remains high due to rising shelter and service costs. According to Bank of America, higher energy prices are expected to push the headline CPI even higher.

Bergquist highlights the advantages of Bitcoin in an inflationary environment. “Holding dollars during rising inflation reduces your purchasing power, whereas storing value in Bitcoin can protect it,” he concludes.

As inflation worries persist, Bitcoin is poised to solidify its role as a decentralized financial hedge, offering a reliable alternative to traditional currencies.

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