This has left people questioning the state of the economy, and wondering what sort of impact it will have on the everyday individual, as well as the digital asset space.
The Consumer Price Index for All Urban Consumers is a tool used to determine the state of the economy within the US.
The CPI-U is generally considered a better representative of the economy than the stock market, as the stock market is not reflective of the average consumer, but rather a specific subsection of society that actively engages in trading.
This pattern is almost identical to when the CPI-U increased by 5.4% over 12 months in 2008, signifying the great economic recession.
Although, the US government is largely to blame for this rise in inflation.
Deutsche Bank has also pointed its finger at the US, claiming that stimulus packages are triggering inflation rates.
It is no coincidence that, during the highest annual percentage increase the CPI-U has seen in 13 years, cryptocurrency has seen one of its wildest bull markets to date.
With the knowledge that the US government performed terribly on many levels at handling the pandemic, and with growing concerns that COVID-19 may be lab-grown, the last 12 months have caused a great many to move away from institutions.
Added to this is the fact that, during the biggest financial crisis since 2008, conglomerates such as Amazon saw a nearly 200% increase in profits.
A fair theory to propose, based on economic and social observations, would be that decentralized cryptocurrencies rise whenever trust in institutions falls.
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