Cryptocurrency markets soar as inflation hits 30-year high

Cryptocurrency markets surged to record highs on Wednesday, as investors continued to hoard bitcoin (BTC) and alternative currencies against the backdrop of high inflation in the United States.

The Cryptocurrency market capitalization – an important measure of the health of the digital asset class – it reached $3.11 trillion, according to to Coingecko. The asset class has grown by a cumulative 20% over the past two weeks.

Bitcoin price suddenly soared Above $69,000 during the morning session, Tags A new high ever. ether (ETHIt also touched new highs, peaking at around $4,870, according to Cointelegraph Markets Pro.

Bitcoin is attracting bids thanks in part to its perceived status as a hedge against inflation and currency devaluation, with its proponents claim That BTC is the best “hard money” alternative to fiat currencies. Bitcoin has excel Gold, the most widespread inflation hedge, is by a large margin year-to-date, up over 130% compared to gold’s 4% decline.

Inflation concerns were rampant on Wednesday after the Labor Department mentioned Another big hike in consumer prices. The US consumer price index, a broad measure of inflation, rose 6.2% annually in October, the highest level since 1990. So-called core inflation, which removes volatile goods like food and energy, increased 4.6%, the largest annual rate. Since 1991.

With inflation largely exceeding the Federal Reserve’s target of around 2%, calls to end the central bank’s stimulus programs have grown in recent months. Last week, the Federal Open Market Committee She said It will start reducing its monthly bond purchases starting in mid-November, but will allow interest rates to be left at record lows indefinitely as higher inflation will prove “temporary.”

Interestingly enough, Federal Reserve Chairman Jerome Powell did Seemingly He changed his definition of “transient” inflation to mean that higher prices are here to stay and that future price increases will not be as dramatic as recent gains.

Even with the Fed’s preferred measures, consumer prices are rising rapidly. | Source: Fred

Surely the Fed He prefers Inflation Gauge – Core Personal Consumption Expenditure – Good below The main figure for the consumer price index. Core personal consumption expenditures averaged 3.6% annually for the past four months of reports ending in September.