Bitcoin smashes through $69,000 as US inflation hits its highest point in 30 years
- US inflation hit 6.3% as Bitcoin crosses previous all-time high and begins price discovery.
- Analysts argue that Bitcoin is likely to hit the end of year targets in the currency cycle as the Consumer Price Index rises.
- Bitcoin is considered a hedge against inflation; therefore, a rise in inflation influences capital rotation in Bitcoin.
Bitcoin enters price discovery as US inflation hits 6.3%. The benchmark cryptocurrency has hit a new all-time high as institutional capital continues to flow in Bitcoin.
Bitcoin price is on track to hit $100,000 at the end of 2021
Bitcoin has recovered from the drop below $60,000 over the past week and hit a new all-time high earlier today. Experts have noted a direct correlation between inflation in the United States and Bitcoin’s price.
Bitcoin entered price discovery as US inflation hit its highest point in 30 years, 6.3%. Experts consider Bitcoin a hedge against inflation; therefore, a rise in inflation implies capital rotation in BTC, triggering a price rally.
Historically, spikes in BTC prices correspond with a rise in US inflation.
Renowned cryptocurrency analyst Peter Brandt commented on Bitcoin’s price rally. Brandt is bullish on XRP and expect’s BTC price to go up.
Note to my trolls (assuming you can read)
— Peter Brandt (@PeterLBrandt) November 10, 2021
Let me type this really slow so that you might understand -- I have only shorted cryptos once in my life (Nov 14, 2018)
I have been continually long $BTC since early Apr 2019. I want Bitcoin price to go UP (spelled U P)
Interestingly, in addition to acting as an inflation hedge, Bitcoin has an impact on monetary policy. A rise in inflation and a drop in the US employment rate encourages the Fed to tighten its policy. Therefore, inflation is considered as a key indicator of Bitcoin’s price trend and upcoming reversal.
The dropping BTC balance across spot exchanges is considered another indicator of a bull run. For the past 20 months, exchange BTC reserves have plunged, implying increased accumulation and a supply shortage.
Pseudonymous cryptocurrency analyst @CryptoCapo_ has evaluated the BTC price trend and believes that BTC price is rallying toward $100,000 in the ongoing bull run.
FXStreet analysts are of the opinion that Bitcoin has presented the most bullish setup of the year.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
