The current decline in US inflation is similar to the pattern that drove the S&P 500 index up in late 1974 (1352) after inflation reached its peak. Now, some analysts are predicting the possible growth of the price of Bitcoin, citing the high correlation of this movement trend of this index with high-risk assets.
To the report CoinDesk, since the third quarter of 2022, we have seen a decrease in the inflation rate in the United States and other parts of the world. In response, the Federal Reserve, the world’s most powerful central bank, has pushed cryptocurrencies and stocks into a bear market over the past year as it eases the pressure of tightening liquidity policies.
Now the question is whether to reduce Inflation Is it enough to reverse the market trend of high-risk assets, including digital currencies?
The answer is yes. Data shows that the SNDP 500, Wall Street’s stock index and a measure of risky assets around the world, tends to stabilize and start moving higher when the consumer price index (inflation rate) peaks. Historically,Bitcoin price It has also moved more or less in line with the US stock market.