Another ATH, this time $69,000 holds the top spot. Today's move wasn't caused by a Tweet, it was a reaction to real world financial data, namely US inflation.
The price of cars, clothes, healthcare, accommodation, food, and transport, are all on the rise. The Fed seems to be the only voice that claims this move in inflation is transitory, and for good reason. Should inflation spill over in to wages, the fight to control it will require a tightening of monetary policy, and with it, slower growth, reduced job creation, and a broad reduction in the standard of living.
Today's Inflation print at 6.2 was the highest in over 30 years. Basically, if you're under 45, you don't really remember what inflation does to an economy.
Bitcoin didn't exist the last time inflation was north of 6%. What will be interesting to see is the rhetoric of Bitcoin being 'digital gold' increasing across mainstream press.
Inflation isn't a surprise, the Fed have stated they wish to let it run hot as the economy recovers from the pandemic.
If you're a gold bug, maybe its time to face facts.
Digital replaces analog. Everytime.
For a brief moment, Bitcoin looked to be trading back down to support at $64,890. The US data ended that move, with prices moving $2,000 higher within in 30 minutes, and breaking through the previous ATH. Attention now turns to $70,000, and Bitcoin's march into uncharted territory.
The dips are shallow, and with the period of consolidation behind us, buyers will be left chasing the market higher. Support at $64,890 is likely to be rock solid, should the bears be able to stem the buying and push prices south.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
Investors aren’t ready to give up on equities yet.