• Bitcoin (BTC) is hovering around $25,000 after reaching a nine-month high of about $26,500.
• The rise of the world’s largest cryptocurrency came minutes after the release of U.S. Consumer Price Index data.
• BTC had gained double digits for two consecutive days before fading late and trading below $25K.
Bitcoin Hits 9-Month High
Bitcoin (BTC) is hovering around $25,000 after reaching a nine-month high on Tuesday at about $26,500. The rise of the world’s largest cryptocurrency by market value came minutes after the U.S. Consumer Price Index was released. BTC had surged to a 9-month high above $26,500 before retreating again and trading below $25K.
Inflation Data Boosts Crypto Markets
The Bureau of Labor Statistics released their February consumer price index (CPI), which showed inflation declining to 6% from January’s 6.4% reading and the core rate increasing by 0.5%. This mildly encouraging data boosted crypto markets as bitcoin rose above $26,000 on Tuesday for the first time in nine months before losing some of its gains later on in the day.
Analysis From Tastycrypto Head Of Digital Assets
Tastycrypto Head of Digital Assets Ryan Grace discusses his crypto markets analysis and shares his insights into investor sentiment on stablecoins such as USDC and DAI compared to Bitcoin’s performance during volatile times like these when investors look to hedge against inflationary risks with safe haven assets like gold or digital currency alternatives such as cryptocurrencies that are outside traditional banking systems and beyond government control or manipulation through monetary policy decisions like quantitative easing or interest rate changes etc..
Galaxy Research Analyst Shares Insights At Consensus 2023
Head of Firmwide Research Alex Thorn will be discussing his take on “Bitcoin and Inflation: It’s Complicated” at Consensus 2023 in order to provide more clarity on how cryptocurrencies are affected by global economic news events such as CPI releases and other macroeconomic indicators driving investor sentiment towards digital asset investments over traditional financial instruments that are subject to inflationary pressures due to central bank actions that can impact fiat currencies negatively over time with regards purchasing power parity etc..
Conclusion
Overall, Bitcoin has been able to weather any storms so far this year despite some volatility due mainly driven by external factors out of its control such as inflation data releases from major economies worldwide leading many investors turning towards cryptocurrencies like BTC as a way to hedge against potential losses in their traditional portfolios while also providing an opportunity for long term growth in an increasingly digital economy driven by blockchain technology advancements throughout various industries including finance among others where decentralized ledger systems offer unprecedented levels privacy & security never seen before now made possible through distributed ledgers & smart contract protocols amongst other things making it easier than ever before for users looking for alternative investment opportunities outside traditional asset classes like stocks & bonds etc..