How does CPI inflation data contribute to bitcoin’s rally?
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer How does CPI inflation data contribute to bitcoin’s rally?
On Wednesday, November 10, the price of Bitcoin skyrocketed to a new all-time high of $69,000 shortly after the US reported a 6.2% rise in the Consumer Price Index (CPI).
This indicates that US inflation is growing at the fastest rate since the 1990s.
The rise in the price of Bitcoin was very evident given that the digital asset acts as a strong inflation hedge.
Su Zhong, CEO of CF Benchmarks, told Bloomberg that Bitcoin has been enjoying a steady rally over the past few months and recently increased the pace after the launch of the Bitcoin Futures ETF.
But Chung adds that rising inflation in all of the world’s major global economies could provide additional fuel for the bitcoin price rally.
Read:Cryptocurrency trading platform disappears with the money of customers and users
Some of the biggest players on Wall Street participated in this bitcoin price rally due to inflation fears.
Additionally gold, Bitcoin’s hedging rival, has largely underperformed as an inflation hedge over the past year and so on.
As a result, Bitcoin is finding greater acceptance among the big players.
Bitcoin enters correction:
Even though the price of Bitcoin crossed $69,000 on Wednesday, it only lasted for a very short time.
Bitcoin entered a sharp correction, dropping nearly 10% all the way to the bottom of $64,000.
This led to massive liquidations across the market.
As the “Wu Blockchain” journalist explained:
In the past 12 hours, Bitcoin broke through the $69,000 level and then started dropping to the low of $64,565.
The short-term rise and fall led to the liquidation of more than 450 million dollars in 4 hours, and more than 680 million dollars in 12 hours.
Impacted by the just-released CPI data, Bitcoin broke a record high of $69,000. pic.twitter.com/bu8lplFv6Y
– Wu Blockchain November 10, 2021
Read:A start-up in Zimbabwe intends to launch a digital currency to tackle inflation in the country
Wu further explained that the decline in the price of Bitcoin came after a sharp correction in US stocks.
The Nasdaq Composite Index (INDEXNASDAQ:.IXIC) was down 1.66% by market closing hours.
But Bitcoin managed to rise again from this bottom and went up to estimate at the time of publishing this article at a price of $ 65,300.
Read also:
Will Coinbase Support Bitcoin ETF Trading?
Reddit co-founder supports Solana with $100 million investment
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time