Inflation fears pump bitcoin prices above $56,000
Over the past day, the bitcoin rate has risen by 16%, outstripping the stock market in dynamics. This rapid growth is due to the next statement by the US Federal Reserve about its readiness to buy in unlimited quantities of government bonds and other assets.
Starting from Wednesday, the price of MTC gradually increased and today even touched the $ 9490 mark, but the subsequent correction quickly lowered it. At the time of publication, the leading cryptocurrency is trading at $ 9205 and the bulls are trying to keep the rate from an uncontrolled collapse.
As a result of the 16% jump, Bitcoin’s profitability has increased to 20% YTD, which exceeds the performance of stocks. and gold, which grew by 12% during this period. The daily increase in MTC exceeded the S index by more than 5 times & P 500, which added only 3.1%, although recently the correlation of these assets has noticeably increased. BTC is up 242% from March low of $ 3800.
An impetus for the growth of the cryptocurrency market served as a statement by the chairman of the Fed about the readiness of further infusion of money into the markets, which could lead to inflation of the Central Bank’s balance by more than $ 6.5 trillion. In parallel with the decline in GDP, this will contribute to a significant increase in inflation..
Analysts believe the current breakout is driven by investor fears and concerns, not technical data or an impending halving, and a course above $ 8000 is unreasonable. In their opinion, the situation could change dramatically after the bears enter the fight..
Meanwhile, altcoins picked up the leader’s momentum and returned to the green zone. During the day, the Ether (ETH) rate increased by 8.11% to $ 221, XRP added 6.61%, rising to $ 0.229, and Bitcoin Cash (BCH) increased by 10.19% to $ 270.
text: Ivan Malichenko, photo: Shutterstock, chart: TradingView