Is hotter inflation data the real bullish case for bitcoin?

00:00 Speaker A

US September CPI comes in hot, sending Bitcoin sharply lower. Okay, so here's what happened.

00:06 Speaker A

Break it down. Bureau of Labor Statistics, September headline CPI rose 0.6% month over month

00:13 Speaker A

and 3.7% year over year. Core CPI rose 0.3% monthly and 2.6% annually.

00:20 Speaker A

Now, what matters for markets, bear with me, expectations were 0.6% monthly,

00:25 Speaker A

3.6% annually for headline and 0.2% monthly. So, everything came in hot versus expectations.

00:31 Speaker A

Now, gasoline rose 9.1%, which accounted for more than half the monthly headline increase, but shelter, used vehicles, apparel, and transportation services also

00:40 Speaker A

increased.

00:41 Speaker A

Okay, let's begin to start to maybe kind of try to attempt to think about potentially unpacking this because

00:49 Speaker A

I'm going to be honest up front, nobody can.

00:52 Speaker A

First, let's talk about the absurdity of market reactions.

00:57 Speaker A

Markets do not react to how inflation is behaving in a vacuum.

01:03 Speaker A

We know that the target is 2% and we are absolutely nowhere close to 2%.

01:09 Speaker A

So, what markets are reacting to is how the numbers, which are calculated differently uh almost every time, but we can get into that another time.