- Monetary inflation in the US is moving at a 40-year high.
- Bitcoin has reversed its two-week losses by surpassing the $31k level.
As inflation began surging up in late March, the growth of the global economy slowed down. The US Federal Reserve led by Jerome Powell chose to raise the interest rates to combat inflation and restore price stability in their economy.
The interest rate hiked to its 22-year high and the inflation rate was recorded at 6.3% in April. Inflation has surged in various economies in May. In Spain, it surged up to 8.5% and in Germany, it jumped to 7.9%.
The Fed’s bet on raising the interest rates to quell the soaring inflation has led Americans to panic about the possibility of a recession. People are longing to free the world from the oppression of the centralized banking system.
A well-known Bitcoin advocate tweeted:
Each individual and sovereign state in the USA should add #Bitcoin to their state treasury and reject the invisible tax that the federal government enacts on its people through monetary inflation.
— Dennis Porter (@Dennis_Porter_) May 31, 2022
States Are Turning into Bitcoin Associates
Individual Senators have already begun hailing support for bringing in a cryptocurrency bill to adopt Bitcoin into the sovereign state. On May 20, the Floridian State introduced a legislation bill to allow its citizens to invest Bitcoin in the 401(k) retirement plans. Two prominent Senators Gillibrand and Lummis have revealed that they are working on proposing a bipartisan bitcoin policy framework on June 7.
Ted Cruz, US Senator for Texas, said:
“Uncontrolled, decentralized currency is terrifying for those who want control of currency.”
The Texan Senator revealed that he is an active Bitcoin investor who buys the crypto weekly. Renowned democrats are also advocating the adoption of Bitcoin.
At the time of writing, according to CMC, Bitcoin traded at $31,545 USD. The dominant cryptocurrency started this week with its first green candle since March 2022. Low-powered bulls are trying hard to find their solid support and fuel the upswing. A renowned crypto VC, Tim Draper, is very bullish on Bitcoin and commented that the crypto might hit $250,000 USD by late 2022.