bitcoin price managed to increase with historically increasing inflation. After the Consumer Price Index was announced to reach its highest point since 1981, BTC started to recover. Luna Foundation Guard’s consistent purchase of Bitcoin seems to have ignited a rally in the asset.
Bitcoin Price Recovers From Correction
Bitcoin price remains highly correlated with US tech stocks. BTC, Consumer Price Index (CPI) After the announcement that it had reached a high level, it managed to get rid of the correction. Since Bitcoin is typically considered a hedge against inflation, rising CPI triggers a spike in BTC price.
The CPI represents a measure of the average overtime variation in the prices paid by urban consumers for a group of consumer goods and services.
CPI in the US reached its highest level since 1981. Typically, an increase in inflation Bitcoin (BTC) triggered a rally in price. Bitcoin witnessed a recovery and made a return above $40,500.
According to the data released, the CPI in the US has reached 8.5%, and the director of digital asset strategy at VanEck thinks this means inflation is already in double digits. While this represents the highest increase in the last four decades, it marks an increase in inflationary pressures and a bullish outlook among Bitcoin investors.
Of course, another driving force behind this recovery is the consistent buying and hoarding of LUNA Foundation Guard. LFG’s current balance is 42,406 BTC and the organization recently bought $100 million.
While the organization’s BTC accumulation did not have a significant impact on the LUNA price, it unexpectedly increased the Bitcoin price.
According to analysts, the BTC price could go up to the $ 50,000 level. A bullish pattern on the Bitcoin price chart could help the asset’s price move up to $50,000. On the other hand, BTC price does not seem likely to drop below the $29,000 level on the upside.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.