USD Inflation Rises For First Time In 8 Months As BTC Marks New ATHs

The 12-month percentage change for all items in the consumer price index (CPI) fell to 2.6% in October, according to the latest data from the US Bureau of Labor Statistics published on Wednesday.

This may signal the start of a bull market in dollar-denominated assets across the board as the economy heads into 2025. The CPI measures the rate of gain or loss of dollar purchasing power in over time A higher CPI means that the prices of the typical basket of consumer goods are rising.

From March to September, the CPI fell steadily, and the US central bank cut rates in September. After that, the price of Bitcoin started to rise until October, as well as Wall Street stocks.

US stock benchmarks such as the S&P 500 index set new all-time highs this month and last. After the US election held on November 5, Bitcoin soared to a new peak. The biggest digital asset hit a new all-time high above $93,000 on Wednesday.

Fed rate cuts nitrogen deflation

Cooling from 3.5% to 2.4% in September, the year-on-year rate of change in inflation fell 25.71% from March. During that same time period, the S&P 500 gained 8.59%, while the price of Bitcoin fell -1.53%. Now that inflation is on the rise again, will the price of BTC continue to make new all-time highs?

Santiment analysts said Wednesday that they expect Bitcoin to rise to six figures by 2025, to $150,000 or $200,000.

Last December, Bitcoin ETF issuer VanEck predicted a Bitcoin price of $100,000 by the end of 2024. The cryptocurrency looks set to reach that milestone within the timeframe specified by two of the company’s analysts.

Are stocks and BTC coupled?

As the rising tide of the dollar printer lifts all decent boats, the daily price movements of Bitcoin and stocks are starting to correlate again.

The Pearson 30D BTC correlation, after reaching a 44-month high of 0.89 (on a scale of -1 to 1) on September 26, began to fall to 0.49 on the eve of the Northern election – american By the time of the Labor Department’s reprint of the CPI on Wednesday, that number had returned to 0.80.

Part of the reason is that the same institutions are buying both with money from the press. Popular Bitcoin investment analyst Lark Davis commented, “BlackRock keeps buying.”

Between November 6 and 13, Wall Street sold over $4.73 billion worth of Bitcoin ETFs. The institutional crowd cooled off on Thursday, with $400 billion in net outflows, but BlackRock investors were happy to buy the dip with $126 million in net BTC sales on Thursday.

“BlackRock knows,” an Ethereum analyst responded to Davis’ thread.

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