Bitcoin has weathered a surprisingly strong U.S. inflation picture that dampened hopes for rapid interest rate cuts and spooked global markets.
The digital asset was trading at $49,500 as of 10:21 a.m. Wednesday in Singapore, near its highest in more than two years, with better-than-expected figures for January's U.S. consumer prices released on Tuesday. Little has changed since then.
In contrast, the S&P 500 index fell 1.4%, its worst daily CPI performance since September 2022, but gold rallied as traders backed off expectations for Federal Reserve rate cuts by July. fell, and bond yields rose.
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IG Australia market analyst Tony Sycamore said in a note that Bitcoin “has shown remarkable resilience despite a deterioration in risk sentiment overnight.” At the same time, individual technical analysis based on chart patterns suggests a temporary decline to the low $30,000 range, he said.
Sector-specific factors are supporting Bitcoin, including the debut of a Bitcoin-only US exchange-traded fund. A series of products including BlackRock Inc. and Fidelity Investments Inc. have raised a net $3.3 billion since trading began on Jan. 11.
Meanwhile, the so-called Bitcoin halving scheduled for April will curb the supply of the largest digital asset, which many see as supporting prices based on historical precedent. ing.
Caroline Moron, co-founder of Orbit Markets, a digital asset derivatives liquidity provider, said: “After four months of spectacular bull market, the market was I think we'll take a short break here.”
Bitcoin has tripled since the beginning of last year as the digital asset rebounds from the 2022 crash. Bets in the options market show traders are targeting prices above the record of around $69,000 set in November 2021.
© 2024 Bloomberg
