HomeCryptocurrency NewsInflation Soars: What This Means For Bitcoin

Inflation Soars: What This Means For Bitcoin

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Bitcoin rallied briefly off the latest inflation report from the US government. In other news, the sky is also blue.

Covered:

  • US Inflation Report Update
  • Bitcoin Price Reaction

RECOMMENDED: BITCOIN RALLIES OFF REPORT OF WORSENING INFLATION

US Inflation Update

The official consumer price index (CPI) inflation report for the month of November came in today, and it clocked a record 6.8% inflation, the highest level recorded in the last 39 years. As the Fed and the US government continue printing more and more dollars to supposedly provide pandemic “relief,” investors are making sure to get out of cash and into assets that will appreciate as the money supply increases.

Inflation numbers have been getting red hot in the latter half of 2021. The most recent 6.8% reading marks the third month-over-month increase in inflation since August. 

Blockworks also recently highlighted inflation numbers around the world.

Bitcoin Price Reaction

Thankfully, Satoshi Nakamoto designed the perfect technology designed for protecting against the very phenomenon that the world is experiencing today.

After a bearish past couple of days, Bitcoin finally looks to be showing some relief from the inflation report as investors logically are turning to the fastest appreciating asset over the last decade.

Looking at the charts, Bitcoin (BTC) had a nice bounce off the $47,500 level and rallied to just under $50,000 after the news landed. The digital asset has since pulled back slightly and is trading at $48,772. 

On-chain analyst Will Clemente pointed out that it looks like Bitcoin “barted” again on lower time frames.

Inflation Soars: What This Means For Bitcoin

Interestingly enough, BTC looks like it’s retesting longer-term support from its previous April highs. Despite the bearish sentiment seen online, Bitcoin could be telling us that it’s ready to run up again.

The relative strength index (RSI), which measures the overbought and oversold conditions of an asset, has reset to lows that previously marked local bottoms before Bitcoin went on to rally even higher.

RECOMMENDED: MORE THAN 25% OF US INVESTORS HOLD BITCOIN, ACCORDING TO GRAYSCALE

There’s no guarantee that Bitcoin does hold these levels, and a break below current support could spell out a bloody future in the near term for the crypto markets. On the flip side, if Bitcoin has found a bottom, the current price level presents an amazing buy opportunity.

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Brady Tinnin
sharing my perspective on the bitcoin and crypto markets . follow my twitter below for more personal insights and egregious takes .

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