BTC hit a new all-time high! It didn’t last long, however…
The Bitcoin price rose up again for another all-time high at $69,000. As Ether continued its long, tough job toward rising up to $5,000. After reaching a new high of $4,868 earlier today. Shortly after hitting this fresh breakthrough, however, traders began taking profit, leading to a nearly $7,000 drop which plunged BTC price below $63,000.
Interestingly, this morning’s breakout opened right as a report from the U.S. Bureau of Labor Statistics showed a sharp 6.2% annual rise in the Consumer Price Index, a figure which is the highest in 30 years so far.
According to the Bureau of Labor Statistics, rising energy costs fueled a rise in the Consumer Price Index, but for at least 6 months, analysts have tracked the rising costs of food and other goods. The current Consumer Price Index is the highest it has been since October 1990. The core inflation, a figure that ignores the impact of the rising cost of goods, showed a 4.6% increase, a level not seen since 1991.
Biden Administration on BTC
Amid rising inflation, the Federal Reserve and the Biden administration continue to stand by their message that the situation is “under control” but investment markets reacted negatively to the news that they heard.
Despite the concerning news and slight pullback in traditional markets. BTC and Ether price rose up again, in a dynamic way. That analysts like Anthony Pompliano refer to as “asymmetric price action” were investors who see it as a red hot stock market. And unsustainable central bank monetary policymaking risk-on assets like Bitcoin as an attractive investment. And hedges against gold, the dollar, and inflation.
According to Cointelegraph business editor, Sam Bourgi, Bitcoin is viewed by many as the best “hard money” alternative to sovereign currencies and:
“Bitcoin has outperformed gold, the most widely regarded inflation hedge, by a considerable margin year-to-date, having gained over 130% compared with gold’s 4% decline.”
Shortly after achieving these astronomical new heights. Bitcoin’s price fell back towards $62,700, before recovering slightly to around $64,500, and most altcoins endured near double-digit losses.
Even though the current downside move is sure to shock some investors. And a slight correction after reaching new all-time highs is a customary practice for Bitcoin.
From the perspective of technical analysis. The profit-taking near all-time highs and the need for a retest of lower support levels. Are normal processes for most cryptocurrencies. In fact, a quick glance over discussions by many analysts and traders on Twitter shows that most are expected. BTC to revisit lower support levels at $64,000. And below before recapturing bullish momentum and moving higher.
The overall cryptocurrency market cap now stands at $2.91 trillion and Bitcoin’s dominance rate is 41.9%.