US inflation rises to 2.6% – Bitcoin hits new all-time high

<img srcset=" https://www.blocktrainer.de/fileadmin/_processed_/a/f/csm_US_Inflation_Rate__3__7e75e3ed5d.png 600w, https://www.blocktrainer.de/fileadmin/_processed_/a/f/csm_US_Inflation_Rate__3__e10d385b7b.png 900w, https://www.blocktrainer.de/fileadmin/_processed_/a/f/csm_US_Inflation_Rate__3__dae909372c.png 1200w, https://www.blocktrainer.de/fileadmin/_processed_/a/f/csm_US_Inflation_Rate__3__6d085172b5.png 1800w, https://www.blocktrainer.de/fileadmin/_processed_/a/f/csm_US_Inflation_Rate__3__f99e88dc53.png 2400w" sizes="(min-width: 1200px) 1200px, 100vw" class="image-embed-item" title="US inflation rate over the past 5 years” alt=”US inflation rate is rising again.” src=”https://www.blocktrainer.de/fileadmin/_processed_/a/f/csm_US_Inflation_Rate__3__702cb60812.png” width=”800″ height=”494″ loading=”lazy”/>
US inflation rate over the past 5 years – Source: Trading Economics

US inflation is rising again after hitting a 42-month low in September. In general, falling inflation rates do not mean that prices are falling again, but simply that they are rising less sharply.

Since Donald Trump was elected as the 47th President of the USA, there have been increasing concerns that the price level could increase significantly in the coming months – due, among other things, to higher tariffs and the anticipated, more escalating national debt.

However, the fact that the inflation data for October was exactly in line with expectations caused a sigh of relief on the capital markets for the time being. Confidence is now higher again that the Federal Reserve can continue to cut interest rates as planned – even though inflation, at 2.6 percent, is still well above the infamous 2% target.

Lower interest rates usually lead to more money being invested. On the one hand, because raising capital is becoming more affordable and, on the other hand, because fixed-interest investments are becoming less attractive. In addition, in a fiat money system, the amount of money in circulation increases when banks grant more loans.

Bitcoin shows a high correlation with the global money supply, which is only expected to continue to increase due to the interest rate turnaround that has already been initiated by the major Western central banks. Accordingly, some market participants are currently stocking up on the most important cryptocurrency in anticipation of further rising prices.