Bitcoin price briefly hits a new all-time high of $ 69,000 before plummeting
Cryptocurrency prices go up, but so does the price of everything else in America! BTC hits a new all-time high as data shows that US inflation rose to a 30-year high.
Bitcoin’s price hit another all-time high at $ 69,000 and Ether continues its long journey towards $ 5,000 after hitting a new high at $ 4,868 today.
Interestingly, the break started just when a report from the US Bureau of Labor Statistics showed a sharp 6.2% annual increase in the Consumer Price Index, a figure that is the highest in 30 years.
According to the BLS, rising energy costs drove a rise in the CPI, but for at least 6 months, analysts have followed rising costs for food and other goods. The current CPI is the highest since October 1990. Core inflation, a figure that ignores the impact of the rise in the cost of goods, showed an increase of 4.6%, a level not seen since 1991.
Amid rising inflation, the Federal Reserve and the Biden administration continue to send messages that the situation is «under control,» but equity markets reacted negatively to the news.
Despite the worrying news and the slight pullback in traditional markets, the price of BTC and Ether rose, a dynamic that analysts like Anthony Pompliano refer to as «asymmetric price action» in which investors who see A red-hot stock market and unsustainable central bank monetary policy make risky assets like Bitcoin attractive investments and hedges against gold, the dollar, and inflation.
According to Cointelegraph business editor Sam Bourgi, Bitcoin is considered by many to be the best «solid money» alternative to national currencies and:
«BTC has outperformed gold, the most popular inflation hedge, by a considerable margin so far this year, having gained more than 130% compared to gold’s 4% drop.»
In the last few hours, the price of Bitcoin has retreated from its all-time high and is currently trading at $ 65,600. From a technical analysis perspective, taking profit near all-time highs and needing to retest lower support levels are common processes for most cryptocurrencies. Many analysts expect BTC to visit the lower support levels at $ 66,000 and $ 64,000.
The global cryptocurrency market capitalization currently stands at $ 2.83 trillion and Bitcoin’s dominance index is 43.7%.