New records for bitcoin in the wake of the new increase in inflationary pressures. The price of the cryptocurrency has pushed up to 68,990 dollars, the new all-time highs. Immediately after the release of the US inflation figure, which has soared to its highest levels since 1990, bitcoin has gained about $ 3,000, with investors buying assets perceived as a store of value such as bitcoin, gold (+ 1.5% to 1 . 857 $) and silver (+ 3.57% to $ 25.163).
Bitcoin has marked more than + 40% since October and according to analysts at JP Morgan the rally was mainly driven by rising inflation expectations and the attractiveness of bitcoin as a hedge against rising prices.
US inflation jumped 0.9% on a monthly basis in October, more than the 0.6% rise expected by the consensus, spiking 6.2% yoy, the highest level since 1990. Core inflation, that is, purified of the more volatile components represented by energy and food prices, it increased by 0.6%, compared to the estimated + 0.4%, bringing the figure on an annual basis to + 4.6% from + 4% in September. According to Bloomberg, the US five-year ‘break-even rate’ – an indicator of inflation expectations over the next five years, as derived from bond market indicators – jumped above 3%, the highest since at least 2001. Traders in the Federal Reserve key interest rate futures contract market now see a 38% chance of a rate hike in June 2022 compared to 28% before the inflation report came out. Yesterday, St. Louis Federal Reserve Chairman James Bullard said the US central bank could hike rates twice in 2022 after closing $ 120bn a month QE.