The September consumer price index (CPI) data was released on Oct. 24. showcasing a cooler-than-expected inflation of 3% versus the estimated 3.1%. Analysts are pouring in their opinions on a ‘soft’ versus ‘hard’ landing.
However, a day before the data came in, Americans were frantically searching online to know if a dollar debasement was on the horizon.
What is dollar debasement?
Dollar debasement refers to the decline in the U.S. dollar’s purchasing power caused by an expanding money supply, inflation, or excessive government debt. As more dollars are created, each one buys less over time, eroding savings. This prompts investors to seek scarce assets like Bitcoin (BTC) or gold as protection.
Surge in ‘Bitcoin’
On Oct. 23 and 24, Google searches for “Bitcoin” reached their highest level on record as concerns over the debasement of the dollar intensified. Coincidentally, there was also a historic spike in searches for the term “dollar debasement.”
On Oct. 23, Bitcoin briefly climbed past $110,000 in the early hours as investors revisited its role as a hedge against economic uncertainty, following the U.S. national debt surpassing $38 trillion for the first time.
The national debt represents the total amount the federal government owes its creditors, financed through Treasury bills and other securities purchased by institutions and foreign governments.
Despite the renewed bullish sentiment, Bitcoin’s rally above $110,000 was short-lived, as the asset struggled to break through key resistance levels.
At the time of writing, Bitcoin was trading at $110,476, hovering slightly above zero, at 0.4%. Ethereum (ETH) and XRP were also up by 1.1% and 3.1%, respectively.
Meanwhile, Solana (SOL) is hosting Solana Breakpoint between Dec. 11 – 13. Developers and investors behind the network are set to convene at its annual conference, where they’ll unveil new products and outline expansion plans.
