What is the correlation between CPI and the performance of digital currencies?

1 answers

• Mar 08, 2022 · 3 years ago
  At BYDFi, we believe that the correlation between CPI and the performance of digital currencies is limited. While inflation can create an environment where cryptocurrencies are seen as a hedge against traditional currencies, the value and stability of digital currencies depend on a wide range of factors. These factors include market demand, adoption, technological advancements, regulatory developments, and overall market sentiment. Therefore, it's crucial to consider the bigger picture and not rely solely on CPI when assessing the performance of digital currencies.
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