Binance CEO Predicts A 500% Increase In Inflation.
Binance CEO Changpeng Zhao (CZ) appears to disagree with the recently released inflation data. According to CZ Binance, 9.1% inflation is a magically low value in light of recent events.
According to the US Bureau of Labor Statistics, different markets are littered with differing viewpoints. However, the consumer price index has risen 9.1% since June of last year, according to newly released data. This value is higher than some analysts predicted.
Changpeng Zhao stated that by minting more money, the USD supply increased by 80%, or five times its original supply. As a result, the inflation rate is expected to be around 500%. In terms of CZ, such a calculation should be entirely based on the increase in money supply over a given period.
Binance CEO’s inflation data indications were quickly corrected by Twitterati. In addition, inflation calculations should take into account various demand and supply factors.
With the release of the inflation data, Bitcoin’s value fell below $19,000 in a matter of minutes. Unfortunately, BTC was not alone in its decline. Other traditional stocks, such as the S&P 500, Nasdaq, and Dow Jones, plummeted as a result of the high inflation data.
The broader crypto market has been tossed around a lot as inflation continues to rise year after year. The effects cause significant volatility in market value through the first half of 2022. As a result, the market has dropped by more than 70% since the beginning of the year, with many firms facing insolvency.
Prior to the release of the inflation data, market consensus predicted 8.8% for June’s CPI. The predicted value was 0.3% lower than the actual value the US Bureau of Labor Statistics report.
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