2026-01-19 15:34:54

The latest Bank of Canada survey reveals a notable shift in business sentiment regarding inflation. Fewer companies now expect inflation to remain elevated above the 3% mark over the next two years—down to just 16% from 18% in the third quarter.

Why does this matter for the crypto space? Persistent inflation concerns have been a major driver of institutional interest in digital assets as inflation hedges. As inflation expectations moderate, we're seeing a gradual recalibration of risk assets and portfolio strategy.

The declining percentage suggests growing confidence that price pressures are stabilizing. This could influence central bank policy trajectories, which in turn shapes broader market dynamics for both traditional and crypto markets.

For traders and investors watching macro trends, this data point underscores the importance of monitoring economic sentiment indicators. When inflation expectations shift, so do appetite for alternative assets.

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ForkMaster

· 01-19 16:04

Once inflation expectations loosen, institutions have fewer reasons to hedge... After this round of adjustment, I see many project teams will come up with new stories again. The rate drops from 18% to 16%, which basically means the casino chips are changing hands; it really depends on how the Federal Reserve follows up. Over the past few years of raising three kids, my deepest experience is that you can't just listen to the central bank; you have to do your own calculations.

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AirdropHunterWang

· 01-19 16:03

Inflation expectations have weakened, and the reasons for institutions to buy the dip in Bitcoin are not as strong... Now this gets interesting.

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SneakyFlashloan

· 01-19 16:00

What does the decline in inflation expectations mean... is the excuse for institutions to buy the dip about to disappear? It feels like the inflation narrative in the crypto circle is about to cool down. Only 18% of companies are now bullish on inflation. That's good, the liquidity story needs to be rewritten... Wait, could this be a positive signal that traditional finance is dumping on crypto? From an inflation hedge to a pure speculative asset, big players need to reallocate their positions. By the way, after this data was released, have those shorting already started increasing their positions?

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NFTArchaeologis

· 01-19 15:51

Inflation narrative loosens, and the hedging properties of digital assets are fading... It's like watching the antique market; when economic anxiety eases, people's obsession with "safe-haven assets" also cools down. It's a bit unfortunate.

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AirdropSweaterFan

· 01-19 15:42

Inflation expectations cool down... How much longer can BTC hold up now? It feels like institutions are about to run away It feels like the days of flooding the market are coming to an end. Maybe it's better to stockpile stablecoins The central bank's attitude has changed. Are they really going to raise interest rates this time? What about our broken coins? 16% down from 18% sounds like not much, but it's a signal... The trend really has shifted Here we go again with the inflation hedging theory. This misconception should have been broken long ago When macro data changes face, retail investors are about to be harvested again. The tricks are still the same Is the gap between these two points really that important? Feels like it's being over-interpreted The rate hike cycle is coming, all risk assets need to be revalued... including my shitcoins What does cooling inflation mean? It means there's no reason to hodl anymore Data can be deceptive, but trends won't. It's time for everyone to wake up

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TradFiRefugee

· 01-19 15:41

Inflation concerns have eased, and institutional hedging needs have also relaxed. What does this mean for the crypto market in the short term... It's a bit unfavorable. Retail investors are still betting on safe-haven assets, but institutions have already started reducing their positions. Wait, if the central bank really stops raising interest rates, then risk assets should be bottoming out again? The signals are a bit confusing... This data indeed shows what a true "sentiment indicator" is, not those self-congratulatory narratives on social media. From inflation hedging to a risk appetite game, the players have all changed.

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