𝐈𝐍𝐅𝐋𝐀𝐓𝐈𝐎𝐍 𝐈𝐒 𝐒𝐓𝐈𝐋𝐋 𝐍𝐎𝐓 𝐃𝐎𝐍𝐄 ⚠️

US inflation pressures are showing that the fight may be far from over.

The latest data reveals something important:

🔶 US PCE inflation has surged +28.5% since February 2018

🔶 If inflation had followed the Fed's long-term 2% target path, prices would have risen only +17.4%

🔶 Current inflation path overshot the target by +11.1 percentage points

🔶 The divergence accelerated heavily after 2021 as massive stimulus, ultra-low interest rates, and post-pandemic liquidity entered the system

🔶 PCE inflation has now remained above the Fed's 2% target for around 60 consecutive months

🔶 Latest reading reached 3.5%, the highest level since June 2023

Why does this matter?

Higher inflation doesn't only affect consumers.

It directly affects:

💎 Rate-cut expectations
💎 Bond yields
💎 Equity valuations
💎 Liquidity conditions
💎 Risk assets including $BTC

The market spent months expecting easier monetary policy.

But sticky inflation creates a different possibility:

📉 Higher rates for longer.

And historically, tighter liquidity conditions are not the environment risk assets enjoy the most.

𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐇𝐞𝐢𝐠𝐡𝐭𝐬 𝐕𝐞𝐫𝐝𝐢𝐜𝐭:

The question is no longer:

"Did inflation peak?"

The bigger question now is:

"Is inflation becoming structurally sticky again?" 👀

$BTC ‌