By James Van Straten (All times ET unless indicated otherwise)
Bitcoin (BTC) continues to climb the wall of worry, pushing above $97,000 despite hotter-than-expected U.S. consumer and producer price inflation reports in the past couple of days. That’s a surprise. With prices rising and the likelihood of a Fed rate cut receding, you’d expect risky investments like cryptocurrencies to pause, at the very least.
The buoyant behavior is possibly underpinned by signs that inflation is still seen as easing in coming months.
“Bitcoin could likely get some relief in the short-term judging by the high-frequency U.S. inflation indicator by truflation which suggests a significant decline in headline inflation over the coming months,” said Andre Dragosch, the head of European research at Bitwise. The Truflation U.S. Inflation Index currently shows 2.06%, indicating a potential decline.
Dragosch also noted the Federal Reserve’s cautious stance,…
