Digital Assets: US Inflation Hits Record; So Do Bitcoin And Ether

November 10, 2021 | Digital Assets, News
https://dailyalts.com/wp-content/uploads/2021/11/coins-gf16f684d6_640.jpg

Cryptos’ counter-inflationary attributes were in full view Tuesday after October prices data.

Bitcoin and ether rocketed to new all-time highs on Tuesday after the release of October inflation data. Figures from the US Labor Department showed that in October consumers were hit by high prices in a host of everyday products, propelling the Consumer Price Index, a measure of inflation, to jump the most in 30 years. (Cryptonews)

The consumer price index surged 6.2% from a year ago in October, the most since December 1990. Core inflation, stripping out food and energy, increased 4.6%, the fastest gain since August 1991. The data likely triggered a surge in the prices of cryptocurrencies, which are viewed as a hedge against inflation and the depreciation in the purchasing power of money.

The leading cryptocurrency, bitcoin, made a U-turn from its prevailing short term correction and surged more than $2,000, in a short span of about 45 minutes, to a new all-time high of $68,990.90.

Ether followed suit, similarly going vertical and scaling a new record price of $4,865.57.

Kathy Bostjancic, chief US financial economist at Oxford Economics, told the WSJ that a confluence of factors such as supply disruptions, semiconductor shortages, and a shortage of workers in the US were pressurising the uptrend in prices.

“The bigger picture is we’re likely to see inflation climb higher. Things are going to get worse before they get better,” the economist said.

JPMorgan on inflation and bitcoin

Last month, analysts at JP Morgan said in a note that bitcoin – not gold – was the new inflation hedge.

“Institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold,” they said. “The reemergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge.”

However, today’s CPI data also triggered a sharp rally in gold, which took out the $1,830 resistance and touched a high of $1,870.

Related Story: Bitcoin An Insurance Policy Against Inflation [Grayscale Report – Aug’20]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/12/60148621_1291834164298938_7384402834688573440_n.jpg
FinTech: LatAm BNPL Provider Kueski Nabs $202M Series C Round
December 3, 2021     FinTech, News, Venture Capital

Kueski is one of the largest buy-now-pay-later (BNPL) and digital lenders in Latin America. It announced December 2 its close of a $202 million Series C debt and equity round….

https://dailyalts.com/wp-content/uploads/2021/12/bitcoin-gd3611bef8_640.jpg
Digital Assets: Renowned Investor Charlie Munger Sides With China On Its Crypto Ban
December 3, 2021     Digital Assets, News

Charlie Munger has shot off another broadside against bitcoin, endorsing China’s action in banning cryptos. A long-standing bitcoin skeptic, Munger was speaking in an interview for the Sohn Hearts &…

https://dailyalts.com/wp-content/uploads/2021/12/rider-img.jpg
Venture Capital: 15-Minute Delivery Startup JOKR Raises $260M Series B
December 3, 2021     News, Venture Capital

New York-based instant grocery delivery startup JOKR has become a unicorn within nine months of its launch and raised a $260 million Series B within five months of raising $170…

https://dailyalts.com/wp-content/uploads/2021/12/img-scaled.jpeg
Venture Capital: Porsche Buys A Stake In Sustainable Homes-Focused Startup 1KOMMA5°

Porsche, the German car maker, has taken a stake in Hamburg-based startup 1KOMMA5° through its venture finance arm, Porsche Ventures. The startup seeks to boost the rollout of presently decentralized…