Bitcoin critic Peter Schiff sneered at the economic data that was released earlier, calling it a “stagflation trifecta.”
CPI Data Has Not Impacted Market Outlook
By this statement, Schiff strongly believes that the economic data has not had any impact on the general outlook of the market. In other words, the market is still at a standstill when checked by many economic and performance metrics.
He highlighted the fact that April retail sales have remained unchanged even after prices reportedly jumped.
This morning’s economic data is a stagflation trifecta. April retail sales were unchanged despite rising prices, (excluding gas sales fell), May Empire State. Mfg. tanked to minus 15.6, far lower than expectations, and the April #CPI rose by another .3%, for a YoY gain of 3.4%.
— Peter Schiff (@PeterSchiff) May 15, 2024
Noteworthy, the United States Consumer Price Index (CPI) was released on Wednesday after so much anticipation from market observers. Their eagerness was fueled by the recent U.S. PPI data that showed an increase in inflation.
The U.S. Labor Department data detailed a 0.3% increase in CPI in April, still a dip from the expected figure of 0.4%. This was the same rate of increase experienced in March. On a Year-over-Year (YoY) basis, the U.S. CPI has surged 3.4%, aligning with market expectations.
Similarly, the Core CPI , with food and energy prices, surged 0.3% on a monthly basis. This also aligned with Wall Street estimates. Again, the Core CPI advanced 3.6% on a YoY basis after reaching 3.8% the month before.
Bitcoin and Mainstream Adoption Looming
The inflation appears to be dropping but still remains higher than the Federal Reserve’s 2% target range. Unfortunately, this impacts on global investors’ sentiment.
This sentiment could mean that cryptocurrencies, particularly Bitcoin could see better days. For perspective, the stagnancy of the U.S. market could trigger mainstream crypto adoption, particularly for Bitcoin.
The flagship cryptocurrency is currently trading at $64,845.90 after registering a 5.53% in the last 24 hours. Similarly, the Bitcoin Futures Open Interest has surged by up to 1.75% in the last few hours, underscoring investors’ appetite for reasonable risk investments. In the long run, Bitcoin may serve as a hedge against the growing inflation.
Critics like Schiff oppose this sentiment, citing that Bitcoin as a digital currency is not functional. He highlighted Bitcoin’s slow speed and high transaction costs as obstacles to its daily use.
According to Schiff, supporters of Bitcoin mistakenly label it as “digital gold.” He noted that, unlike gold, Bitcoin does not have any tangible utility and intrinsic value that are essential for long-term value.
Even after pointing out the shortcomings of the recent economic data, Schiff is not likely to support Bitcoin’s usage as inflationary hedge.
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