Bitcoin weathers global market slump sparked by inflation jump

BITCOIN rode out a surprisingly sturdy United States inflation print that roiled international markets by dimming hopes for fast interest-rate reductions.

The digital asset traded at US$49,500 as at 10.21 am on Wednesday (Feb 14) in Singapore, close to the best degree in over two years and little modified since Tuesday’s publication of above-forecast figures on US shopper costs in January.

In distinction, the S&P 500 Index slid 1.4 per cent – its worst CPI-day efficiency since September 2022 – whereas gold slumped and bond yields soared as merchants dialled again expectations for a Federal Reserve price minimize earlier than July.

Bitcoin confirmed “impressive resilience despite the overnight deterioration in risk sentiment”, Tony Sycamore, a market analyst at IG Australia, wrote in a word. At the identical time, separate technical evaluation based mostly on chart patterns indicators the potential for a brief dip to the excessive US$30,000s, he mentioned.

Sector-specific elements have been supporting Bitcoin, together with the debut of US exchange-traded funds devoted to the token. The batch of merchandise from the likes of BlackRock and Fidelity Investments have attracted a internet US$3.3 billion since they started buying and selling on Jan 11.

Meanwhile, the so-called Bitcoin halving due in April will curb the provision of the biggest digital asset, a improvement seen by many as a prop for costs based mostly on historic precedent.

“We expect the market to take a short pause here after a spectacular four-month-long rally before the upcoming Bitcoin halving takes over the narrative,” mentioned Caroline Mauron, co-founder of digital-asset derivatives liquidity supplier Orbit Markets.

Bitcoin has tripled because the begin of final yr in a comeback from the 2022 digital-asset rout. Wagers within the choices market point out merchants are concentrating on costs past the file of just about US$69,000 achieved in November 2021. BLOOMBERG