After breaking beyond the $50,000 barrier on Sunday, Bitcoin (BTC) fell to about $49,000 in a matter of hours and is trading around this area on Monday, December 13.
Bitcoin had regained the majority of its losses over the last week when it crossed back above the $50,000 mark, with the climb coming only two days after the S&P 500 finished Friday at a level that was close to its all-time high.
Also, compared to the previous day’s pricing, the cryptocurrency’s value has declined by around 0.52%. It is currently changing hands at $48,962 and up 1.81% over the previous seven days, with a total market worth of $925 billion, according to CoinMarketCap data.
Bitcoin beats inflation
According to data acquired by Finbold, Bitcoin is up 66% in 2021 as high inflation reduces the value of the United States dollar. In particular, Bitcoin ROI by Finbold shows that the return-on-investment (%ROI) of BTC against the USD currency is 66.9% year to date (YTD) and 155.26% up against the dollar in the last year.
It’s also worth noting that Bitcoin outperforms indexes year-to-date, with the S&P 500 up 32.71%, the Nasdaq up 31.39%, and the Dow Jones Industrials up 41.65%.
Notably, the Consumer Price Index (CPI) numbers provided by the United States on Friday, December 10, indicate that inflation was 6.8% in November, the highest level in 40 years. In response to the news of inflation on December 10, Bitcoin quickly rallied before falling in price a short period later.
Kiyosaki warns of ‘fake inflation’
Meanwhile, businessman and author of the personal finance book “Rich Dad Poor Dad,” Robert Kiyosaki, has predicted a huge market collapse and depression, a scenario that would have an influence on a variety of financial assets, including Bitcoin.
Kiyosaki asserted on Twitter that the crisis will be precipitated by the Federal Reserve and the Biden administration’s continuous ‘fake inflation.’
He did, however, urge that investors take advantage of the fall to buy in Bitcoin, gold, and silver, but advised investors to be cautious of the current stated inflation.
“FED & Biden pushing FAKE INFLATION. Crash and Depression coming. Gold, silver, Bitcoin, real estate will crash too. Ready to buy more gold, silver, Bitcoin, real estate after the crash has crashed. Time to get richer after fake inflation crashes. Be aware. Take care,” said Kiyosaki.
With record inflation levels in the United States, the present economic climate has revived the argument over which asset is the best inflation hedge: gold or Bitcoin.
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