Ethereum price moves toward $3K, but pro traders choose not to add leverage

The relationship of Bitcoin with inflation has been widely discussed since its inception. There has been a lot of speculation surrounding the meteor rise of Bitcoin in the last 13 years, but not as common as the depreciation of the Fiat currency, which is certainly considered inflation. Now the price of bitcoin is falling, confusing many bitcoiners, as inflation is at its highest in more than 40 years. How will inflation and monetary policy affect the price of bitcoin?

First let's talk about inflation. The Federal Reserve's order includes an inflation target of 2%, yet we have printed an 8.6% consumer inflation figure for May 2022. That's more than 400% of the Fed's target. In reality, inflation is probably higher than the CPI print. Wage inflation is not keeping pace with real inflation and households are starting to feel it big time. Consumer attitudes are now at an all-time low.