Danish inflation has hit a 37-year high and economists are warning it will rise further, with the biggest impact on millennials and young adults.
Danske Bank, Denmark’s largest bank, published a report on general market conditions and said the future is highly uncertain.
Denmark is experiencing inflation levels not seen since the mid-1980s. Inflation currently stands at 5.4%, which could have an impact on the cryptocurrency market as well.
The report covers the economic outlook of four Nordic countries: Denmark, Sweden, Norway and Finland.
The increase in inflation is partly due to the conflict in Ukraine, which has led to a rise in food and commodity prices. And limited access to oil and gas from Russia could further fuel inflation in the near future.
Danish Millennials Most Affected
Danske Ba’s senior analyst Björn Tanga Sillemann said the younger and less wealthy would be most affected and they would probably have to develop worse habits. bloomberg,
Helz Pedersen, chief economist at Nordea Bank ABP, said many people will learn to get by with fewer discretionary spending, such as vacations, cars and fine dining, as the prices of food products are also rising.
Other countries are also facing high inflation rates, and there is some concern in the United States that the country will experience an inflationary shock, or that the country is on a recession.
As a result of these big economic trends, the crypto market can benefit. The asset class could see an increase in market cap, and higher inflation rates could result in a rise in the price of bitcoin.
Inflation is becoming a matter of concern for investors all over the world. Nigerian investors are abandoning the naira in favor of crypto, and with inflation reaching 7%, some believe the US may follow suit.
Despite bitcoin falling significantly from last year’s highs, the cryptocurrency has long been considered a solution to inflation.