The Australian Bureau of Statistics reported year-on-year inflation for the third quarter of 2022. This figure, 7.3%, is the highest since 1990 when Australia entered a severe recession.
The Australian government, like many others, has been raising interest rates in an attempt to subdue inflation. Earlier this month, these were increased by 250 basis points to 2.6%.
Despite austerity measures including higher interest rates globally and transitions to quantitative tightening, including by the RBA, the exchange rate for bitcoin rallied this week, by over 5%, to trade just shy of $32k AUD.
The hash rate, a measure of resources dedicated to securing the blockchain, reached a new all-time high this week of 270 EH/s. Metrics, including the Puell Multiple (below), illustrate that returns for hashing (or “bitcoin mining”) are at historic lows. Such conditions have historically aligned with excellent entry points for investment in bitcoin.
The Reserve Bank of Australia will present their interest rate target on Wednesday, next week (1 November). It is expected to rise by 250 basis points to 2.85%.