Analyzing the Potential Impact of the CPI Report on US Inflation and Bitcoin Price Movements

Investors are using the stock market as a means of protection against the recent inflation surge, which sustained at over 4% between April 2021 and May 2023. However, the impact of inflation on cryptocurrencies remains uncertain. The recent decline in tech giants has caught the attention of investors, particularly in light of the expectation of an additional interest rate hike by the Federal Open Market Committee. Gold, real estate, and bonds are also losing appeal as safe assets. Bitcoin whales have increased their leverage long positions using derivatives despite the cryptocurrency's price remaining around $29,500. Bitcoin's solid derivatives metrics and a strong demand for call options suggest investors' optimism for its potential price appreciation. However, in the short-to-mid term, there is not much evidence to suggest that Bitcoin will experience a significant surge if inflation becomes widespread in the United States.