I would like to start by saying that the following is not an analysis by an economist but my opinion on what is happening today, following data from the Fed.
As we all know, in the world of cryptocurrencies there are various types of influence both positive and negative, towards those who invest. Among the various we remember the FUD (fear uncertainty doubt), the FOMO (fear of missing out) and today we add the fear of inflation! Those who were born and invest in these years, in fact, also have to deal with the American policy that provides for a continuous injection of liquidity that is to the detriment of those who keep their savings in dollars. This is why it is appropriate to define a new acronym: FDI (fear of dollar inflation)!
There are those who see in this graph only a line that rises without the slightest how to change direction and those who instead look at the image as they would look at an impending disaster. If you notice, in fact, since 2008 there has been a continuous and increasing injection of liquidity, which has undergone a strong surge after Covid. All this will lead to a certain result: what previously could have been bought with 1 dollar will now cost more.
How do you protect yourself from this? There are many strategies and this is not a financial advice but just my opinion. What makes a difference is a priceless asset or better still, deflationary, that is, it increases its purchasing power over time rather than decreases it. This is where Bitcoin comes in: by nature its price is destined to rise and those who have known it come back.
And what do you think about?
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