MEXCSticky Inflation: Expert Reveals “Best Assets” To Handle Upcoming Tumble
The CPI for July was revealed to be at a less than expected 8.5%. The crypto and broader markets witnessed an immediate rally. However, experts are now starting to sound the alarm about “sticky inflation”.
Michael Ashton, Managing Principal at Enduring Investments LLC, is considered an expert on inflation. In an interview with Kitco News, Ashton reveals that the low CPI data resulted from flexible items like airfare and apparel.
On the other hand, Ashton reveals that the sticky parts of the economy like rent, continue to see skyrocketing prices. According to him, the sticky inflation index continues to accelerate. As a result, he believes the US economy is nowhere near peak inflation.
The Affect Of Inflation On Crypto
The Consumer Price Index resulted in a strong crypto rally. The bullish movement saw Bitcoin cross the $25K mark. Similarly, Ethereum crossed the $2,000 mark as a result of strong market sentiment.
The US Bureau Of Labor Statistics released the CPI on a monthly basis. CPI is a strong indicator of inflation in the economy. The Federal Reserve curbs high inflation through Quantitative Tightening and interest rate hikes.
In June, a higher than expected CPI resulted in an extremely hawkish Fed. As a result, the crypto and stock markets saw a significant slide. Bitcoin suffered its worst financial quarter in over a decade.
However, with a lesser than expected CPI this time around, the market rallied expecting the Fed to pivot from its hawkish stance.
Inflation-Proof Assets To Prepare Against Turbulence
Michael Ashton believes that there are not very many safe inflation hedges because of the lack of inflation for a long time. However, he strongly advises against investing in stocks or bonds. Therefore, crypto, which is correlated with stocks, can also have the same issues.
Ashton believes that investors should buy I Series savings bonds. He also advised investments in “real assets”. These assets include precious metals, real estate, energy, and agriculture.
- Changpeng ‘CZ’ Zhao Confirms Defamation Lawsuit Plans Against Sen Elizabeth Warren
- Pi Coin Gains Another 15% As Pi Network Joins ISO 20022 For Seamless Banking Integration
- Bitwise Solana Staking ETF (BSOL) Makes Record Debut with $69.5M Inflows, $289M NAV
- Trump Insider Whale Reloads $430M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision
- Breaking: $2.6B Western Union Announces Plans for Solana-Powered Stablecoin by 2026
- Pi Network Patterns Point to More Gains Despite Manipulation Claims
- HBAR Price Poised to Hit $0.30 as Canary Capital ETF Starts Trading.
- Will Solana Price Rally to $300 as Bitwise Launches $BSOL ETF?
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
