Coinshares: "Bitcoin may continue to fall but will hit another all-time high in the next 24 months (...)" Yesterday's US CPI Caused Sell-Off, But Bitcoin Increased Over 1%

Bitcoin rose 1.1% on Wednesday, ending the day around $19.7K, and was back above $20K on Thursday morning. Ethereum has added 4.3% to $1100 in the past 24 hours. Top altcoins are adding from a modest 0.1% (Dogecoin) to a more notable 3.7% (Solana). Total crypto market capitalisation, according to ConMarketCap, rose 2.6% overnight to $896bn.

US inflation data came out stronger than expected yesterday, which triggered an impulsive wave of dollar appreciation and a sell-off in risky assets, sending Bitcoin briefly below $19K. However, it is essential to note that the first cryptocurrency found buyers quite quickly on the decline to these levels and has already more than recovered its losses.

Bitcoin’s sudden resilience to inflation - 1

This is a notable moment, as crypto has often taken on the role of a leading indicator of market sentiment in recent months. According to KuCoin, cryptocurrencies are popular in Saudi Arabia, with around 3 million residents investing in digital assets. Bitcoin may continue to fall but will hit another all-time high in the next 24 months, according to CoinShares.

At the same time, the rate is not expected to fall below $14,000. The US Treasury Department has sought public comment on digital assets’ potential benefits and risks. According to President Biden’s executive order, the Treasury is to study the impact of cryptocurrencies on the financial system, economic growth, and national security. The Bank for International Settlements (BIS) has called for central banks to create “bridges” between the various national digital currencies (CBDC) that would allow tokens to interact with each other.

Alex Kuptsikevich

Financial market professional with 16-years' experience and Senior financial analyst at FxPro. Author of daily reviews on the impact of economic events with comments regularly featured in top international and Russian media. Covers fundamental analysis, global markets, foreign exchange market, gold, oil, cryptocurrencies.

Alex Kuptsikevich is a regular contributor to both digital and print media including CNBC, Forbes, Reuters, MarketWatch, BBC and Coindesk.