The recent acceleration in the United States Consumer Price Index for February has come at just the right time with matching expectations. The index is at 7.91%. It was expected to peak during Q1 and remain elevated throughout this year. Even though it might not have a big impact on prices, the Federal Reserve and other central banks are trying to make monetary policy tighter so that people will believe they can keep prices stable. Related Reading | Gloomy Crypto Future? Book Author Warns We’re In The Biggest Bubble In History The price of bitcoin had decreased since December when the 10-year yield rose, and credit became more expensive. Reviews On Market Inflation People in the credit market understand inflation is here to stay. This means that rising interest rates are going to continue. As credit instruments sell, this causes interest rates to go up. This makes it harder for people to afford things. Dylan LeClair, senior analyst and Co-Founder of 21stParadigm, said; Fixed income doesn’t react well to (accelerating) inflation at four decade highs, who would’ve thought? Higher rates in a historically over-indebted economy; the market is doing the Fed’s hike cycle for them. Things are likely going to break faster than most think. Furthermore, we have increasing financial conditions, and an unwind in leverage (in legacy markets as bitcoin derivatives are already de-risking). On this point, LeClair tweeted...
