EU Regulator Introduces Crypto Banking Rules And US Inflation Explodes

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Bitcoin is trading in the $35k to $40k range with no certainty as to where it would settle. In the past week, the world’s biggest cryptocoin has only moved about 1% according to the statistics over at CoinMarketCap.

US Inflation At 5%

Over in the US, inflation is at its highest point of the past 13 years with prices bound to rise 5% year on year. At this rate, President Joe Biden will have to keep those stimulus cheques coming for ordinary working Americans. Last time that stimmy was sent out, crypto exchanges saw an uptick in new accounts being opened and money invested directly into Bitcoin.

The price of goods is up 5% since this time last year.

5% inflation. In a year.

If only there was a mathematically deflationary asset available to everyone in the world to hedge against this…

Buy #Bitcoin.
https://t.co/T3mbB6rDuU

— The Wolf Of All Streets (@scottmelker) June 10, 2021

Speaking in the Wall Street Journal, Gus Faucher, chief economist at PNC Financial Services Group, explained that the expectation (or hope) was still that:

This is part of the dislocation from the reopening, and I would expect that…inflation will settle down later this year. When you take a step back and look broadly at inflation throughout the economy, there are lots of areas where prices move very slowly, and it’s going to take a lot to get a sustained acceleration beyond these temporary factors.

Basel bends to crypto

Meanwhile the Bank for International Settlements Basel Committee, an European regulatory agency, has by now admitted that there is no turning away from crypto anymore. As it acknowledges the cryptosphere will continue to grow in the coming years, the Committee is now attempting to place much-needed rules around EU banks being allowed to hold various cryptocurrencies.

This could further boost adoption in Europe.