Dollar Inflation Jump Could Stimulate Bitcoin And Gold Growth By Year End

Rising US dollar inflation to a 30-year record is prompting companies and private investors to rethink their capital allocation in favor of safe haven assets such as gold and bitcoin.

According to official data, for the year the indexconsumer prices in the United States rose 6.2%, well above forecast expectations. This indicates that the global economic recovery is delaying, creating new risks not only for business, but also for the population.

Deutsche Bank strategists believe that the jump in dollar inflation in the short termin the future will further slow down the economicgrowth and will reduce consumption, stimulating investors to reconsider their priorities in choosing financial instruments. The traditional asset for hedging inflation risks is gold, but in recent years, Bitcoin has acquired similar properties due to its weak correlation with the real sector of the economy and the rapid adaptation of the market to new conditions.

Cryptocurrency data clearly confirms thistrend. Glassnode continues to report that BTC reserves on exchanges have fallen to multi-year lows. Combined with the 40% rise in the price in October and the regular achievement of new all-time highs, this clearly indicates the interest of institutional investors.

According to Deutsche Bank in the mid-termIn the long term, the economy will be stagnant and depressed, which is a positive signal for safe-haven assets, bitcoin and gold, which retain their value in an unstable environment.

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