Why Bitcoin Set A New All-Time High Today
The price of Bitcoin (CRYPTO: BTC) traded lower most of Tuesday night and early Wednesday morning, before spiking more than 3% Wednesday morning.
Why did Bitcoin spike?
Bitcoin was one of the few winners of Wednesday morning’s CPI data, which tracks inflation. The CPI number came in higher than expected, at 0.9 percent compared to the estimated 0.6 percent. This is a 50% increase from the estimate.
Following the CPI data, futures for the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all traded lower.
Bitcoin is seen by many investors as an inflation hedge, much like gold. The quick spike in Bitcoin indicates that buyers came in to purchase Bitcoin once it was clear that inflation rose higher than expected yet again.
Bitcoin hit a new all-time high at around $68,740.
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