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Question #568

What impact could U.S. inflation data at 2.7 percent have on Bitcoin’s price movements?

Catégorie: General
Inflation readings do not affect Bitcoin at all because it is digital
Stable inflation near expectations lowers rate hike concerns and boosts Bitcoin demand
High inflation levels make Bitcoin less attractive because it erodes purchasing power
Low inflation always triggers an immediate cryptocurrency price crash across all markets

Pourquoi est-ce la bonne réponse?

This is correct because moderate inflation reassures investors that central banks are less likely to raise interest rates sharply. Lower rate expectations make non-yielding assets like Bitcoin more attractive, as investors search for higher returns than cash or bonds.

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