Inflation concerns push Bitcoin and Ethereum prices lower, but analysts still predict another crypto surge
The United States has not seen such skyrocketing inflation rates in three decades, which is why consumers as well as investors are starting to worry about the decreasing buying power of traditional currencies like the US dollar. The stock market has already reacted with a minor correction, and inflation hedges like the precious metal gold has increased in value over the last few days.
Many experts meanwhile predict that such high inflation rates could act as a catalyst for the growth of cryptocurrencies like Bitcoin and Ethereum (Crypto hardware wallet from US$59 on Amazon). The Bitcoin for example jumped to a new record all-time high near the US$69,000 mark after the 6.2 percent inflation rate in the US was officially disclosed on Wednesday. However, Bitcoin abruptly gave up these gains and is currently priced at US$65,000 per bitcoin.
The second-biggest cryptocurrency Ethereum showed a similar trend, and after reaching a new record of US$4,859 on Wednesday dropped back to currently US$4,740 per ether. Although crypto analysts still predict a strong November, this well-known volatility further illustrates the high risks of crypto investments, even during bullish periods of time. In the end, even the best analysts cannot safely predict how persistent inflation will actually influence the price of cryptocurrencies, which is why investors should stay cautious when investing their money in the crypto market.
Disclaimer: This article is for informational purposes only and does not contain any kind of investment advice.