Bitcoin price shows continued strength as US inflation numbers hit 40-year high
Analysts believe that rising inflation coupled with traditional retail markets performing poorly has helped spur Bitcoin's ongoing ascent.
- The American Consumer Price Index (CPI) is currently hovering at a staggering 7.5% with more inflation likely on the horizon.
- Bitcoin's most recent pump has seen the digital currency wipe out its monthly losses entirely.
- A Tennessee house of representatives member recently submitted 2 separate bills seeking to legalise crypto, NFTs and the like within the state.
Bitcoin, the world's largest cryptocurrency by total market capitalisation, has showcased a strong correction after having breached the AUD$63,000 (US$45,000) mark less than 12 hours ago. As a result, the digital asset is showcasing a daily loss ratio of 3.1% while trading at a price point of AUD$60,406.
Earlier this week, the Bureau of Labor Statistics revealed that the American Consumer Price Index (CPI) is currently hovering at an all-time high of 7.5%, with key inflation metrics likely to worsen as a growing list of fiat currencies (including the Dollar, Euro and Pound Sterling) continue to bleed.
In terms of where Bitcoin may be headed over the coming weeks, CNBC's Ran Neuner believes that the flagship asset is in a new market cycle at the moment and could, therefore, experience a major breakout soon, adding:
"This CPI pump is confirmation that CPI/interest rate hikes are part of the old cycle. Ever since we broke the trend line, the news is different, the narrative is different. It's not a coincidence. Be a cyclist."
Lastly, traditional retail market data emerging from the Eurozone has been extremely disappointing, with key markers showing just a 2% year-on-year growth versus its expected 5.1% ratio.
New bills seek to legalise crypto investments in Tennessee
Tennessee House of Representatives member Jason Powell submitted 2 bills earlier this month seeking to allow all individuals residing within Tennessee to freely invest in cryptocurrencies and non-fungible tokens (NFTs). To elaborate, the tabled documents seek to amend the state's current financial framework so as to add crypto, blockchain and NFTs to its list of authorised investments. On the development, Powell was quoted as saying:
"I want to see if my state and my city — I represent Nashville — can be a leader when it comes to blockchain technology. I think it's important to promote legislation that creates a pro-blockchain environment. I think it's really important to be out there and embracing new technology."
More pro-crypto legislation enters the fray
New Hampshire governor Chris Sununu, who has been holding the above-said position for a little under 5 years, revealed that he had established a commission earlier this week "aiming to investigate" crypto and blockchain tech, as well as explore legislation surrounding this space. According to the executive order, Sununu's motivation to create the body came as a direct result of digital currencies becoming more widely used across the globe.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.