Bitcoin reaches record highs in the US with record high inflation

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Bitcoin (BTC) reached another record high on Wednesday, when October’s inflation figures in the US reached an annual rate of 6.3%, the highest level in 30 years.

At 15:22 UTC, bitcoin traded at $ 68,358, a 1% increase over the last 24 hours. The price is down from a peak of 69,044 USD (per Coingecko) reached just around 14:15 UTC, which marks a new all-time high for the highest ranked cryptocurrency.

Source: CoinGecko

The latest price increase for bitcoin comes when the US Department of Labor released new figures which showed that the consumer price index (CPI) in the country is entering its highest level since 1990 and tops 5% for the 5th month in a row.

At the same time, the so-called core price index, which excludes food and energy prices, fell by 4.6% compared with a year earlier, up from 4% in September and shows its largest increase since 1991.

The high numbers also lifted traditional inflation-linked gold by 1.58% for the day, with the metal currently trading just over $ 1,860 per ounce.

According to the Ministry of Labor, inflation was broad, with cars, energy, furniture, rent and healthcare all contributing to the higher figure.

Following the announcement of the high numbers, US President Joe Biden issued one statement where he said that “inflation is hurting Americans’ wallets, and reversing this trend is a top priority for me.”

Kathy Bostjancic, the US chief economist at the US financial economist, comments on the record high inflation figures for the Wall Street Journal. Oxford Economics, sa that both supply disruptions, semiconductor shortages and shortages of workers in the United States contribute to price increases.

“The bigger picture is that we are likely to see inflation rise higher. Things will get worse before they get better,” said the economist.

The higher than expected inflation figures show that US Federal Reserves old position that rising inflation figures in recent months were “transient” seems less likely.

At the same time, as reported, asset management companies Bridgewater Associates sa in a Report from October that the currently high inflation, in their view, has more to do with high demand than lack of supply. In addition, the company also said that inflation is unlikely to be transient and is here to stay.

“The gap between demand and supply is now large enough that high inflation is likely to be reasonably maintained, especially as extremely simple policies encourage further demand rather than limiting it,” the report said.

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