Prices keep rising but bitcoin still isn’t behaving like the inflation hedge it is said to be

Prices keep rising but bitcoin still isn’t behaving like the inflation hedge it is said to be

Inflation concerns were stoked on Tuesday when between May and June saw their largest one-month increase in 13 years, but bitcoin, often touted as a hedge against a weaker dollar, failed to respond in kind. US stocks at the open, while was flat and then steadily dropped over the course of the morning and early afternoon. The price of the world's largest cryptocurrency by market capitalization was lower by about 2%, below $33,000 for most of the day following the announcement of the CPI figures. The asset was trading at $32,854 as of 1:10 p.m. ET Tuesday. This has happened with past readings, as well. In May, on a day when CPI data showed prices rising at their fastest rate since 2008. Theoretically, with higher inflation, demand for assets that can serve as alternative stores of values to cash would rise - bitcoin among them. "Bitcoin isn't behaving like an inflation hedge anymore and will continue to remain heavy over expectations over higher yields," Ed Moya, senior equity analyst at foreign exchange firm Oanda, said in a Tuesday note. That inflation is viewed as transitory, however, could be a reason why the June report wasn't enough of a catalyst to