Saad Ullah
Inflation is heating up again in the United States, and crypto markets are taking notice. The Truflation U.S. Inflation Index hit 2.69% on November 2, 2025—one of the sharpest increases since spring.
The Inflation Picture
As prices firm up across key sectors, 0xMarioNawfal captured the sentiment with a simple tweet: "U.S. inflation is spiking. Do you know what happens when inflation spikes? Bitcoin pumps." The question now is whether this inflationary rebound will fuel another Bitcoin rally, just like it has in past cycles.
According to Truflation, U.S. inflation has bounced back sharply from its spring low of 1.22% and is now approaching the year's high of 3.04%. The chart shows a clear upward breakout over recent weeks, with inflation momentum building into the final quarter:
- Year-to-date Low: 1.22% (April 2025)
- Year-to-date High: 3.04% (January 2025)
- Current Level: 2.69% (November 2, 2025)
The rebound is being driven by recovering energy prices, sticky service-sector costs (especially healthcare and logistics), and ongoing government spending. After months hovering around 2%, inflation is now climbing again—putting the Federal Reserve in a tricky spot as it weighs future rate decisions.
Why Bitcoin Could Benefit
Historically, Bitcoin tends to attract attention when inflation picks up. Investors view it as a hedge against currency debasement and loose monetary policy. During the 2020–2021 inflation surge, Bitcoin soared from $10,000 to over $60,000. In mid-2023, rising inflation expectations helped push Bitcoin from $25,000 to above $30,000. Now, with inflation trending upward again, traders are wondering if we're about to see a repeat performance.
Of course, Bitcoin's relationship with inflation isn't bulletproof. A lot depends on broader liquidity conditions, the Fed's tone, energy markets, and global capital flows. But if real yields stay low and fiat purchasing power keeps weakening, digital assets could see renewed interest as an alternative store of value.
Inflation is quietly reaccelerating, and while it's not as dramatic as the spikes in 2021, it's enough to get investors talking about hedges again. If the pattern holds, this inflation uptick might not just lift consumer prices—it could also fuel another Bitcoin rally. For now, all eyes are on the charts as macro pressures and crypto sentiment start to line up once more.
Saad Ullah
