Bitcoin’s (BTC) price surged past $69K on Wednesday morning after the US Department of Labor released consumer price index (CPI) data. The information revealed that the price of consumer goods had risen sharply, causing fears about impending inflation. The recent increase represents the fastest rate at which it has gone up since 1990. According to the stats, the CPI increased by 6.2%, at a monthly rate of 0.9%.
Investors perceive BTC as a hedge against inflation. Furthermore, billionaire hedge fund manager Paul Tudor Jones told CNBC that he even sees the token as a better inflation hedge than gold. As he put it:
“Clearly, there’s a place for crypto. Clearly, it’s winning the race against gold at the moment.”
To further buttress this stance, leading American bank JP Morgan also released a report in October. The note stated that institutional investors favor BTC as a better hedge over gold. According to the banking giant:
“The reemergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge.”
JP Morgan also further suggested that as long as inflation fears linger, the price of BTC may consolidate and go higher.
Meanwhile, most stocks were down – to start Wednesday’s trading session. Furthermore, the S&P 500 was also down by about 0.29% as at press time.
As of press time, BTC was changing hands at $66,894.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
