- The University of Michigan Consumer Survey reports a surge in inflation expectations, impacting financial and crypto markets.
- Cryptocurrency sentiment shifts, with Bitcoin seeing significant outflows.
- Ethereum attracts inflows as investors seek inflation hedges.
On April 11, 2025, the University of Michigan Consumer Survey revealed that inflation expectations surged significantly. This development, reported by Wall Street Journal journalist Nick Timiraos, draws attention to rising concerns among consumers.
Consumer inflation expectations have now risen to 6.7% from 5.0%, marking the most significant increase since 1981. The survey highlights a cross-political rise in long-term inflation perceptions. Independent party members show the largest increase, indicating a broad-based concern about inflation’s trajectory.
Inflation Spike Prompts Divergence in Bitcoin and Ethereum Performance
Bitcoin experienced considerable outflows of $162 million, while Ethereum recorded a net inflow of $10.48 million. Investors seem to consider Ethereum as a hedge against inflation, suggesting a shift in preferences amid financial uncertainties.
Market responses reflect a mixture of caution and opportunity, with institutional investors like Grayscale adjusting their holdings. Notably, on-chain data reveals whale activity in Ethereum, signaling strategic accumulation.
Regulatory History and Strategic Positioning Amid Inflation Concerns
Did you know? During the late 1970s, similar spikes in inflation led to drastic monetary tightening by the Federal Reserve. This historical context shapes current expectations for regulatory responses in both traditional and crypto markets.
Ethereum, priced at $1,566.02, saw a 24-hour trading volume of $14.43 billion with market dominance at 7.18%. Over the past 90 days, its price declined by 52.43%, according to CoinMarketCap. Despite recent downward trends, Ethereum’s current market conditions reflect heightened investor interest amid inflation worries.
Coincu’s research team suggests potential regulatory tightening could affect market strategies. Historical episodes of high inflation led to monetary policy changes, and similar regulatory actions may influence cryptocurrency markets, emphasizing investor readiness for possible volatility.
Source: https://coincu.com/331667-inflation-expectations-impact-crypto-market/