Bitcoin (BTC) climbed back to $70,000 on Wednesday, reversing its knee-jerk decline after U.S. inflation data for March came in hotter than expected.
BTC fell nearly 4% to $67,500 in the early hours in the US after a government report showed the consumer price index (CPI) rose faster than analysts expected, prompting investors to lower their expectations of interest rate cuts this year to dampen.
The decline was reflected across multiple asset classes, but Bitcoin gradually erased all its losses and rose over 1% in the last 24 hours, outperforming US stocks and gold, both of which ended the day with significant declines. At press time, Bitcoin had slipped slightly from the $70,000 mark and was trading at $69,800.
Most cryptocurrencies underperformed BTC, with the broad-market CoinDesk 20 index down 0.6% over the same period, followed by a 5% to 7% decline in major altcoins Polkadot (DOT), Bitcoin Cash (BCH ) and Near (NEAR) was pulled down. and Aptos (APT).
Decentralized exchange Uniswap's governance token (UNI) plunged more than 10% after receiving an enforcement notice from the U.S. Securities and Exchange Commission announcing regulatory action against the platform.
QCP Capital, a digital asset hedge fund, said the rally shows underlying demand for Bitcoin, with investors viewing dips as buying opportunities.
“This bounce is not surprising as the desk continues to see strong demand for long-term BTC calls even with this decline,” QCP said in a Telegram update. “It is an indication of a deep structural uptrend in BTC.”
A contribution towards the 2% target is intended to help inflate the debt. “Bitcoin is insurance against that,” Clemente added.
UPDATE (April 10, 9:25 p.m. UTC): Adds analyst comment from QCP Capital.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.