Bitcoin price briefly touched $69,000 ATH before plummeting back to Earth

Bitcoin price once again hit an all-time high of $69,000, as Ethereum continued to march towards $5,000 after hitting a new high of $4,868 earlier today. However, shortly after reaching this new milestone, traders began to take profits, resulting in a drop of nearly $7,000.

Interestingly, with a report from the US Bureau of Labor Statistics, this breakthrough began, with an annual growth rate of 6.2%. Consumer price index, Which is the highest number in 30 years.

According to BLS data, rising energy costs have pushed up the CPI, but analysts have been tracking the increase in the cost of food and other commodities for at least six months. The current CPI is the highest level since October 1990. The core inflation rate (ignoring the impact of rising commodity costs) showed an increase of 4.6%, which is the highest level since 1991.

The CPI data highlights a record high inflation rate in 30 years.Source: Fred

In the case of rising inflationAfter that, the Fed and the Biden administration continued to say that the situation was “under control,” but the stock market reacted negatively to the news.

Despite worrying news and minor corrections in the traditional market, the prices of BTC and Ether have risen. Analysts such as Anthony Pompliano refer to this dynamic as “Asymmetric price behavior“Investors who have seen the hot stock market and unsustainable central bank monetary policy are investing in risky assets such as Bitcoin in attractive and hedge against gold, the U.S. dollar and inflation.

According to Cointelegraph Business Editor Sam Bourgi, many people believe that Bitcoin is the best “hard currency” alternative to sovereign currencies, and:

“Bitcoin has Outperform Gold is the most widely recognized inflation hedge. It has risen by more than 130% so far this year, while gold has fallen by 4%. “

BTC/USDT daily chart: Source: TradingView

Soon after reaching these astronomical new heights, the price of Bitcoin fell back to $62,700, and then slightly rebounded to around $64,500. From a technical analysis point of view, profit-taking close to historical highs and the need to retest lower support levels are the usual processes for most cryptocurrencies. Many analysts expect BTC to return to lower support levels of $64,000 and below.

The overall market value of cryptocurrencies is now $2.91 trillion, and Bitcoin’s dominance rate is 41.9%.