US inflation survey: How Will the results be for Bitcoin?

Long before the Coronavirus outbreak in America, the US Federal Reserve resorted to a series of monetary easing policies. Then in 2020, the central bank reprinted a quarter of all U.S. dollars issued in less than 12 months to help the economy during the epidemic.

Fed Chairman Jerome Powell and other central bankers little concern about inflation, despite a recent survey of Americans, 77% are concerned with the rise of shows that inflation in the coming months. So what does this mean for Bitcoin?

Bitcoin soars as US prints too much money since last year

In the first week of March, Federal Reserve Chairman Jerome Powell gave an interview at a business summit organized by The Wall Street Journal, explaining that he was not worried about inflation. And despite the fact that the Central Bank printed large amounts of USD last year and until 2021, other members of the bank also showed little concern about rising inflation.

Atlanta Fed President Raphael Bostic said recently that determining when interest rates will be raised will depend on several factors. Bostic stressed that if prices are not fixed and variable, he will not worry if inflation rises above 2%, or even 2.4%. Additionally, Cleveland Fed President Charles Evans told the public that rising inflation was welcome and that “very low inflation is not good.”

Most U.S. citizens fear inflation risk

Meanwhile, the mainstream media is also telling us citizens not to worry too much about inflation. But Americans seem very worried about rising inflation, according to a recent poll by Civicscience. 77% of US residents are concerned about rising inflation. The Civicscience Survey surveyed about 2,600 people residing in the U.S., and the survey shows that inflation concerns are higher among the younger generation of Americans.

The biggest concern is in the Young: a third of older people are scared

Americans aged 18-24 are “very worried” about inflation, about 50% of 25-34-year-olds are also “very worried” and 48% of 35-54-year-olds are “very worried.” Among those born between the ages of 1946-1964, known as babyboomers, there is a “very worried” group of 37%. Researchers at CivicScience also noted in the survey that Americans are becoming increasingly sensitive to the idea of inflation.

He said: “people whose working hours and wages have declined as a result of the pandemic are the most sensitive to the idea of inflation and what it means in terms of the overall cost of living. If it's hard to put the two collars together even now, imagine how hard it can be once inflation collapses.”

Google data also confirms concern

Financial news organization Zerohedge recently released an indication that inflation fears are at their highest level in 100 years. Zerohedge noted that because Google Trends (GT) data showed a large increase in inflation queries, there was a “panic search” with the term “inflation.” According to GT data in the last week of February, inflation searches show a score of “100,” the highest score GT data gives for questioned terms.

It's not just average Americans who are worried about rising inflation levels. While Fed members believe inflation will cool next year, former Morgan Stanley managing director Manoj Pradhan believes inflation will indeed start to boil over. Pradhan says he came up with this view from data from the Phillips Curve, a data set that measures rising inflation and unemployment statistics..

Inflation in terms of products and substances such as food and timber has already started to rise in 2021, but Pradhan thinks the real flare-up will start next year.

Why is it important for Bitcoin?

This fear could also create a boom for safe-haven assets such as precious metals and cryptocurrencies. Similar to gold enthusiasts, a large number of cryptocurrency supporters began to cherish the very high belief that “holding dollars is riskier than holding cryptocurrencies.”

The fact that bitcoin is now seen as a safe-haven asset, as well as being likened to gold, suggests that an influx into cryptocurrencies and the Bitcoin wing in particular may occur, as it can be easily achieved when inflation rises.