The price of Bitcoin (BTC) has hit a new high today at US$69,000 as Ethereum continued its upward surge towards the US$5,000 level. Know more.
The price of Bitcoin (BTC) hit a new high today at US$69,000 as Ethereum continued its upward surge towards the US$5,000 level. However, just after hitting the ATH, the traders started to book profits. This made the BTC price drop by around US$7,000 to a level below US$63,000.
The rally in the bitcoin price to an all-time high was interestingly triggered by the extremely high inflation rate data released by the U.S. Bureau of Labor Statistics. Its recently released report showed a sharp 6.2% annual rise in the Consumer Price Index of the United States. Reports say that this is the highest annual increase in CPI in the last 30 years (since October 1990). Core inflation also increased by 4.6%, a level that hasn’t been seen since 1991.
Though the Biden administration has said that the conditions are under control, the stock market has reacted sharply. While Dow Jones corrected by 240 points, NASDAQ dropped by 1.7%. In fact, the 10-year treasury yield witnessed the largest one-day rise.
Anthony Pompliano, a dynamic analyst, has pointed out the inverse relationship between the traditional stock market, the growing distrust of the general populace in the central bank's monetary policy, and risky assets like Bitcoin (BTC). He went on to say that Bitcoin is working as a hedge against inflation, the US Dollar, and gold.
Sam Bourgi, the business editor of a renowned cryptocurrency magazine, said:
"Bitcoin has outperformed gold, the most widely regarded inflation hedge, by a considerable margin year-to-date, having gained over 130% compared with gold’s 4% decline."
Just after hitting the US$69,000 ATH, the price fell sharply towards US$62,700 and later recovered to the US$64,500 level. Altcoins witnessed double-digit losses too.