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An image of Bitcoin and US currencies is displayed on a screen during the Interpol World Congress in Singapore on July 4, 2017.
Roslaan Rehman AFP | getty images
Cryptocurrencies fell on Tuesday amid a broader market selloff following a warmer-than-expected CPI reading.
Bitcoin According to Coin Metrix, it was last down 0.8% at $49,658.57. Earlier, it had fallen to $48,372.89. On Monday it crossed the $50,000 mark and reached its highest level in more than two years.
Tuesday’s decline began after the U.S. Bureau of Labor Statistics reported a larger increase in the January consumer price index than economists surveyed by Dow Jones expected. That report put yields in line with benchmarks 10-year US Treasury yield Increase of more than 10 basis points, and pressure on risky assets.
“Bitcoin is an aspirational store of value… and so its price is partly influenced by monetary policy,” said Jurien Timmer, global macro director at Fidelity Investments. “The CPI report came in hot and suggested the Fed is far from set. This suggests higher nominal and real rates for a longer period of time, which in theory reduces the urgency of maintaining stores of value. “
Nico Cordeiro, chief investment officer at Strix Leviathan, said he expects the crypto rally to continue despite Tuesday’s pause.
“However,” he added, “if inflation continues to rise higher than expected, investors should expect long-term weakness, which runs contrary to the popular belief that Bitcoin is an inflation hedge – it is not, it is based on liquidity.” One gauge is the financial system.”
Bitcoin falls to key $48,000 level
crypto exchange coinbase Fell 4.7% and Bitcoin proxy micro strategy There was a loss of 4.39%. Miners cut earlier losses but remain under pressure. cleanspark And Iris Energy Each declined less than 1% after falling as much as 4%. Marathon Digital a decline of 5.72%, and riot platform retreated 3.02%.
Bitcoin remains above $48,600, a level closely watched by investors and chart analysts. Multiple closes above this would support new highs above $50,000 and potentially an all-time high. On November 10, 2021, the coin hit a record high of $68,982.20.
elsewhere, ether Hovered on a flat line while Solana Fifth note of musical scale The token gained 1.79%.
Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange BitBank, said Ether led the crypto rally on Monday when it rose 5.5% to its highest level in a month. He said anticipation of Ethereum’s next big tech upgrade, called Denkun, in March and renewed interest in NFTs, or non-fungible tokens, from the crypto community are driving the price surge.
“The [bitcoin] “The price may be set for some minor correction within a week or two, but its uptrend is likely to continue due to better demand through ETFs and technical sentiment.”
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