Bitcoin price briefly hits a new all-time high of $ 69,000 before crashing

Bitcoin price hit another all-time high at $ 69,000 and Ether continues on its long journey toward $ 5,000 after hitting a new high of $ 4,868 today.

Interestingly, the breakup started exactly when a report by the US Bureau of Labor Statistics showed a strong annual increase in the consumer price index of 6.2%, a number that is the highest in 30 years.

According to the BLS, rising energy costs drove the CPI up, but analysts have been tracking rising food and other goods costs for at least 6 months. The current CPI is the highest since October 1990. Core inflation, a figure that ignores the impact of the rise in the cost of goods, showed a 4.6% increase, a level not seen since 1991.

The CPI data show a record rate of inflation for 30 years. Source: FRED
Bitcoin price briefly hits a new all-time high of $ 69,000 before crashing
Bitcoin price briefly hits a new all-time high of $ 69,000 before crashing

Amid rising inflation the Federal Reserve and the Biden Administration continue to send messages that the situation is “under control” but the stock markets reacted negatively to the news.

Despite the worrying news and slight declines in traditional markets, the price of BTC and ether rose, a momentum analysts like Anthony Pompliano refer to as “Asymmetrical price action,” where investors who see a glowing stock market and unsustainable central bank monetary policies turn risky assets like Bitcoin into attractive investments and hedge against gold, dollars and inflation.

According to the business editor at Cointelegraph, Sam Burgi, many consider it to be Bitcoin is the best “solid money” alternative to national currencies and:

“BTC has significantly outperformed gold, the most popular inflation hedge so far this year, gaining more than 130%, compared to a 4% decline for gold.”

Daily chart of the BTC / USDT pair. Source: TradingView

In the past few hours, Bitcoin’s price has fallen from its all-time high and is currently trading at $ 65,600. From a technical analysis perspective, profit-taking near all-time highs and the need to retest lower support levels are common processes for most cryptocurrencies. Many analysts expect BTC to hit the lower support levels at $ 66,000 and $ 64,000.

The global market capitalization of cryptocurrencies is currently $ 2.83 trillion and Bitcoin’s dominance index is 43.7%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you will need to do your own research when making a decision.

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