Bitcoin reaches $69,000 on higher inflation news. Inflation data strengthened the idea that bitcoin is a hedge against rising cost pressures. And the cryptocurrency is now flirting with a record high of $69,000. For the first time in history.
On Wednesday, the largest digital asset by market capitalization climbed as much as 1.9 percent to $68,991. Surpassing the previous record of $68,991 reached late Monday in New York trading. Other cryptocurrencies had gains as well, with the Bloomberg Galaxy Crypto Index. Which tracks the performance of key cryptocurrencies. Rising as much as 2.4 percent to its highest level since May.
With the core premise that Bitcoin can operate as an inflation hedge gaining traction in recent months. It is possible to explain at least part of the growth in the token’s value. For cryptocurrency supporters, unlike dollars or any other traditional money. The digital coin is designed to be limited in supply and hence cannot be depreciated by a government. Or central bank that distributes an excessive amount of it to the public.
In the words of Sui Chung, chief executive of CF Benchmarks. A cryptocurrency benchmarks administrator, “Bitcoin continues to benefit from the rally. That began in August and escalated through September and October.” While the most recent leg of its surge began in anticipation of the October launch. Of a Bitcoin-futures ETF, it “appears to be propelled by the continuing inflation. That we are witnessing across all of the world’s major economies,” according to the Wall Street Journal.
Prices for everything from food to gas to housing have risen more quickly and been more stable. In recent months than many analysts had anticipated, according to the latest data.
Major Wall Street investors have bought the cryptocurrency
As a result of the inflationary-hedge concept, major Wall Street players have stated. That they have purchased the coin – or have grown interested in it. Their argument has been strengthened by the fact that gold. Which is traditionally seen as an inflation hedge, has underperformed in recent months. Whilst Bitcoin reaches and has risen in value.
Those who oppose it maintain that it does not have a long enough history to demonstrate. That it can, in fact, serve as an inflation hedge. The argument has been made in the past by Cam Harvey of Duke University. Who claims that hypothetically, if investors begin to perceive Bitcoin as akin to gold. Its value may hold for an extremely long period of time. Such as a century or more. When he investigated the worth of gold, he discovered that it has maintained its value for millennia. However, he discovered that it is more prone to manias and crashes when used for shorter periods of time.
Miller Tabak & Co.’s chief market strategist, Matt Maley, believes that many investors are looking. At it as an inflation hedge, but he isn’t certain that it will be a successful strategy.
As for whether it will work, he added, “I am not denying it will. I am simply stating that gold has functioned as an inflation hedge for ages. And that people should use gold in combination with Bitcoin as a hedge.”
According to figures published by Bloomberg, the spot price of gold has fallen by 1.8 percent this year. While the price of bitcoin reaches increased by more than 130 percent in the same period.