Inflation’s Rise: Is Bitcoin the New Gold or Just Fool’s Gold? 💰

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In a rather alarming proclamation, a distinguished economist has heralded the dawn of a new inflationary epoch, one that could rival the most significant upheavals of the last thirty years. This structural metamorphosis promises to shake the very foundations of the global economy and financial markets, much like a particularly vigorous earthquake at a tea party.

It is worth noting that periods of inflation have historically been rather kind to Bitcoin (BTC), as its scarcity and speculative allure tend to send demand soaring—much like a hot air balloon at a particularly festive gathering.

Can Rising Inflation Ignite the Next Bitcoin Bull Run? 🐂

Henrik Zeberg, the Head Macro Economist at Swissblock, recently unveiled a century-long perspective on the US government’s 10-year bond yield. His chart, a veritable tapestry of historical economic phases, categorizes them into inflationary and deflationary regimes—because who doesn’t love a good categorization?

It reveals a “rounding bottom” pattern in bond yields, a delightful precursor to rising inflation that has already made its grand entrance.

“This does not imply immediate inflation (quite the opposite, in fact). However, it suggests that the Economy and the Financial World will be utterly transformed in the coming decade, unlike anything we’ve witnessed in the last thirty years,” Zeberg mused, likely while sipping a rather pretentious cup of tea.

Crypto, Altcoins, and Bitcoin,” he advised, likely while donning a cape and mask.

He suggested that one should then shift those gains into safer assets like commodities, Bitcoin (as a store of value), and cash, ahead of the anticipated market collapse—because nothing says “safety” like cash in a world of digital currencies. Van de Poppe described this cyclical strategy as “probably the best game plan” to navigate the impending economic turbulence, which sounds rather like a game of Monopoly gone awry.

As the global economy braces for a potential inflationary regime, Bitcoin’s role as a hedge against rising prices continues to gain traction. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, also noted this burgeoning trend earlier, likely while adjusting his monocle.

Importantly, the inflationary outlook has already begun to sway financial markets, particularly Bitcoin. The largest cryptocurrency recently soared to a new all-time high, crossing $110,900—because why not? 🎉

Ryan Lee, Chief Analyst at Bitget Research, attributed this rally to several factors, including institutional adoption, growing regulatory clarity, and a post-halving supply crunch.

“Macro conditions are playing their part. Rate cut expectations and persistent inflation bolster Bitcoin’s appeal as a hedge, with many eyeing $113,000 as a realistic near-term target by June 2025,” Lee informed BeInCrypto, likely while adjusting his tie.

However, he did caution that Bitcoin’s sharp rallies often precede corrections, citing potential risks such as a stronger US dollar or geopolitical tensions—because what’s a financial forecast without a little doom and gloom?

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2025-05-26 15:35