The Bitcoin price rose above the $44,000 mark for the first time in seven days since the recent crypto price crash that was blamed on a number of factors, mainly the anti-government protests in Kazakhstan and planned U.S. interest hikes.
A host of crypto commentators have been quick to react to the latest news, with all indications linking the price surge to U.S. inflation – it turns out that the country is experiencing the worst inflation in four decades, an aspect that has opened public debate about the suitability of digital currencies as a hedge against rising consumer prices.
As such, bitcoin, which is the world’s largest cryptocurrency by market value, increased by a significant 3.3 percent to achieve the $44K+ mark in the heat of the consumer price index release.
According to an Al-Jazeera report, the index rose to 7 percent in the year 2021 to place U.S. inflation statistics at the highest level since the year 1982. Prior speculation that this number would be higher added to the already-burgeoning investor interest to seeking cryptocurrency as the go-to safety net.
In layman terms, the falling value of the U.S. fiat currency translates to investor keenness in cryptocurrency – investors choose to place their money in Bitcoin owing to its finite supply that has influenced a section of financial experts to term it as the “digital gold”.
Wading Through Uncertain Times
Just last week, the Bitcoin price plummeted to a dramatic low that was identified to be the lowest point the coin had reached since September 2021. The price event followed price actions across other cryptocurrencies that followed suit in a market phenomenon that took the entire crypto world by storm.
As mentioned already, the price action happened right after a number of critical global events most notably being the widely-reported internet blackout in Kazakhstan (a country that’s credited to be the second-biggest country for Bitcoin mining) following anti-government protests concerning unfavorable energy prices.
Then, Bitcoin lost a staggering 8 percent off its scales and went further than the $41,000 mark as crypto investors went into a digital currency selling frenzy.
At this point, it goes without saying that investors must be careful as not to fall into shaky ground considering that the Federal Reserve is considering a raise in interest rates for the year 2022 as part of their commitment to balance markets by fighting rising prices – such an action is expected to create a considerable shift away from virtual currencies and into conventional savings accounts.
