Bitcoin Breaks $43,000 for First Time in a Week
Bitcoin

Bitcoin Breaks $43,000 for First Time in a Week

4 months ago

The U.S. Consumer Price Index increased by 7% in December, marking the fastest year-on-year gains since 1982.

Bitcoin Breaks $43,000 for First Time in a Week

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Bitcoin has broken through $43,000 for the first time in close to a week on the back of grim inflation figures from the U.S.
The Consumer Price Index increased by 7% in December, marking the fastest year-on-year gains since 1982.

Such a surge had been widely anticipated by analysts, and sets the stage for the Fed to switch off the money taps and begin increasing interest rates.

The release of the latest inflation figures has reliably led to an increase in Bitcoin's price over recent months, not least because the cryptocurrency is regarded by some as a hedge against inflation.

But BTC's lackluster performance since November has put that thesis to the test.

An increase in interest rates would be bad news for Bitcoin and stocks because it makes riskier assets less attractive.

Consumers have been beginning to feel the pinch as inflation contributes to higher prices in grocery stores and at the gas pumps — and for context, the Fed's target for inflation stands at 2%.
Although 7% is well beyond desired levels, the latest CPI reading isn't as bad as what some analysts had been expecting. Given how November's reading had come in at 6.8%, runaway inflation could be starting to plateau — and some experts believe that interest rates might not be increased as dramatically as first thought.
Data from Glassnode shows there has been a marked slowdown in the number of new traders entering the market — and according to Blockforce Capital analyst Brett Munster, retail investors may only begin entering the market once Bitcoin meaningfully breaks above $52,000.

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Altcoins Outperform

Bitcoin has risen by 2.61% over the past 24 hours, but major altcoins have performed far more strongly.
Ether is up 3.83%, Binance Coin by 5.33%, and Solana by 9%. Meanwhile, Cardano has leapt up by 7.15%, XRP by 4.31% and Terra by 9.25%.
Bitcoin's dominance has slipped below 40% at the time of writing — with the cryptocurrency's share of the total market cap dwindling substantially over the past 12 months. This time last year, it stood at 66%.
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