Bitcoin Bounces to $70,000, Ignoring Hot US Inflation – CoinDesk

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Bitcoin Bounces to $70,000, Ignoring Hot US Inflation – CoinDesk

Bitcoin (BTC) rallied to $70,000 on Wednesday, reversing its knee-jerk decline following higher-than-expected US inflation data for March.

BTC fell nearly 4% to $67,500 in early US hours after a government report showed the Consumer Price Index (CPI) was rising faster than analysts’ expectations, prompting investors to moderate their expectations for rate cuts this year.

The decline rippled across multiple asset classes, but bitcoin gradually erased all its losses and rose more than 1% in the past 24 hours, outperforming U.S. stocks and gold, both of which ended with significant declines for the day. At press time, bitcoin had slipped slightly from the $70,000 level, trading at $69,800.

Most cryptocurrencies are lagging BTC, with the broad-based CoinDesk 20 index down 0.6% over the same period, dragged down by a 5-7% drop in major altcoins polkadot (DOT), Bitcoin Cash (BCH), near (NEAR) and aptos (APT).

The governance token (UNI) of decentralized exchange Uniswap fell more than 10% after receiving an enforcement notice from the United States Securities and Exchange Commission, foreshadowing regulatory action against the platform.

Digital asset hedge fund QCP Capital said the rebound highlights underlying demand for Bitcoin, with investors viewing dips as a buying opportunity.

“This rebound is not surprising as the bureau continues to see strong demand for long-term BTC calls even in this decline,” QCP said in a Telegram update. “This indicates a deep structural bullish trend in BTC.”

Will Clemente, co-founder of Reflexivity Research, noted in an article that America’s ever-increasing debt levels are more important overall than individual CPI numbers, and that the worst-case scenario The likelihood is that policymakers will allow inflation to exceed the expected level. Objective of 2% to help inflate the debt. “Bitcoin is insurance against that,” Clemente added.

UPDATE (April 10, 9:25 p.m. UTC): Adds QCP Capital analyst comment.

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