The Bitcoin price reached a record high of $ 69,000 as Ether extended its long journey to $ 5,000 after reaching a new high of $ 4,868 earlier today. Shortly after this new milestone was reached, traders began to make a profit, falling to almost $ 7,000, causing the BTC price to fall below $ 63,000.
Interestingly, the breakthrough has just begun this morning, as a report from the US Bureau of Labor Statistics showed a sharp increase of 6.2% from year to year in the CPI, the highest in 30 years.
According to BLS, the growth in energy prices drove up the consumer price index, but for at least 6 months, analysts have followed the growth in food and other commodity prices. The current CPI is the highest since October 1990. Core inflation, a measure that excludes the effect of rising commodity prices, rose by 4.6%, a level not seen since 1991.
CPI data indicate high inflation in 30 years. Source: Fred
In the midst of rising inflation, the Federal Reserve and the Biden administration continue to report that the situation is “under control”, but the stock markets reacted negatively to the news.
Despite the worrying news and a slight decline in traditional markets, the price of Bitcoin and Ether has risen, a momentum that analysts like Anthony Pompliano call “uneven price action” as investors see a hot stock market and volatile monetary policy at the central bank. politicians take risks. Assets such as lucrative bitcoin investments and hedging against gold, dollars and inflation.
According to Sam Borghi, business editor for Cointelegraph, bitcoin is considered by many to be the best alternative to superb hard currency currencies and:
“Bitcoin has surpassed gold, the world’s most popular inflation hedge, by a wide margin since the beginning of the year, and has gained more than 130% compared to a fall of 4% in gold.”
BTC / USDT Daily Chart: Source: TradingView
Shortly after reaching these new astronomical highs, the bitcoin price fell again to $ 62,700 and then recovered slightly to around $ 64,500, with most cryptocurrencies suffering near double-digit losses.
While the current downtrend will certainly shock some investors, small corrections after hitting new all-time highs are standard practice in Bitcoin.
From a technical analysis point of view, it is normal operations for most cryptocurrencies to make a profit near record high levels and to have to test lower support levels again. In fact, a quick look at the Twitter discussion by several analysts and traders reveals that most BTCs are expected to return to lower support levels of $ 64,000 or lower before regaining bullish momentum and moving higher.
The total market value of cryptocurrency is now 2.91 trillion dollars, and the bitcoin dominance is 41.9%.