Bitcoin sharply surged to a fresh all-time high above $93,000 on Wednesday, continuing its rally since the recent U.S. election. It touched a high of $93,469.08 and is now trading around $91,201.09, for a gain of over 1% on the day. The price appreciation comes as investors are digesting the latest U.S. inflation numbers and how the market reacted to the election in general.
CPI for October was a tad early this week and showed that prices were only modestly up 0.2%. The 12-month inflation rate rose to 2.6% that is against market expectations. The Bitcoin, which is one of the instruments to hedge upon inflation, has its recent vote of confidence on post-election optimism. Will be interesting to see how the fiscal policies of a new Donald Trump administration focus on favoring risk assets and if that will boost the Bitcoin price further.
The overall cryptocurrency market pulled back on Wednesday as investors took profits despite Bitcoin’s strong performance. Major altcoins, including Ether was down 3% and XRP lost 4%, were among the decliners. Major cryptocurrency companies also took hits as their shares fell: Coinbase by 10%, while MicroStrategy lost nearly 8%. Even the stocks of Bitcoin mining firms were down by double digits: Mara Holdings, Riot Platforms, and CleanSpark.
However, that was Dogecoin, which climbed 2% after reports of new Tesla CEO Elon Musk emerging. Recent endorsement of Donald Trump’s re-election campaign and speculations about his real role in the president cabinet have made much attention to the meme coin, which has gained substantially in the last few days. The market participants also carefully follow how such political and economic news might impact the further trajectory of Bitcoin and broader cryptocurrency ecosystems.
