Bitcoin price is decreasing after reaching a record high level followed by Ethereum.
Bitcoin cash price has fallen 5% in the last 24 hours after hitting an all-time high around $68,950 on Wednesday. Bitcoin value peaked immediately after the United States Consumer Price Index (CPI) report, which showed higher-than-expected inflation in October. The US Department of Labor said in a report that the October CPI rose 6.2 percent from 12 months, the fastest pace in three decades. At 21:00 UTC on Wednesday, Bitcoin price was down to $62,000 just hours after trading around $68,950, a 10% drop.
Juan Pelizer at IntoTheBlock said the surprise appeared to coincide with a downturn in US equity markets when analysts took over the CPI report. "The S&P 500 and Nasdaq reacted badly to the announcement," Pelizer said. This then had an impact on the crypto market, he said. In a report Thursday morning, Leonard Neo of Stack Funds wrote that the market's slow response to stocks and bitcoin could be due to the end-of-day view that faster inflation could trigger a faster Federal Reserve response to monetary tightening.
What is the relationship between Bitcoin and stocks?
The whole situation indicates the closing prices of US stock indices, along with BTC and Ether (ETH), the second largest crypto business by market cap, over a seven-day period. It depicts a bearish reaction - perhaps at the end of the day - to the inflation message. According to the latest data, the 90-day correlation between Bitcoin and the S&P 500 has increased from around zero in June – a signal of no real correlation – to around 0.3% now, which is a slightly positive price relationship. Laurent Xis, director of CEC Capital, said he saw high demand for BTC late Wednesday amid falling prices. According to Kssis, the reason for the decline was unclear, but it was exacerbated by the liquidation of long trading positions.
Ether Price, ADA Price, SOL Price
Ethereum price also hit a high on Wednesday at $4,851. It was down 2% during the day during press. Ether is up 35% over the previous month. “I believe that ETH will overtake BTC by the end of this year,” said Daniel Kukan, senior cryptocurrency trader at Swiss Crypto Finance AG. Other green smart contract tokens include Solana's SOL token, which is up 2% in the last 24 hours and is trading at $241, slightly lower than its all-time high on November 6. ADA Cardano is down 4% and DOT Polkadot is down 2.5% over the last 24 hours.