The inflation rate in Brazil, the world’s ninth largest economy, spiked to its highest level in four years, driving more people to Bitcoin, as indicated by the recent rise in Bitcoin trading volumes.
Inflation in Brazil Hits 4.5%
President Jair Messias Bolsonaro took office on January 1, 2019. Since then, Brazil’s inflation rate has shown an upward trend. The Rios Times writes,
“The latest result of the IPCA was the highest for the month of March since 2015. The IPCA, which measures the country’s official inflation, rose by 0.43 percent in February, and 0.09 percent in March of last year.”
As a result, the Brazilian Statistics and Geography Institute (IBGE) reports that the cumulated inflation rate for the last 12 months reached 4.58 percent.
Economic Woes Correlated With Rising Bitcoin Activity
A few days before the announcement of the inflation upsurge, coincidentally, Cointrader Monitor, a monitoring tool that analyzes Bitcoin price movements in the country, tweeted that Brazilian cryptocurrency exchanges traded…