The Bitcoin price has risen with inflation in the past. When the Consumer Price Index reached its highest point since 1981 BTC began its recovery. The asset has seen a steady rise in value due to LFG’s constant Bitcoin purchases.
Bitcoin price recovers after recent correction
Bitcoinprice has a strong correlation to US tech stocks. The asset has recovered from the recent correction when the Consumer Price Index, (CPI), hit a high. A rise in CPI usually leads to a spike of Bitcoin price, as Bitcoin is often considered a hedge against inflation.
CPI measures the change in prices over time for a basket consumer goods and services.
The US CPI is at its highest point since 1981. A rise in inflation is a common reason for a surge in Bitcoin prices. Bitcoin saw a rebound and saw a rise to above $40,500.
The 8.5% CPI level was reached by VanEck’s director of digital assets strategy. This implies that inflation has already reached double-digits. This is the largest increase in CPI in 40 years, which indicates a rise of inflationary pressures. It also signals a bullish outlook for Bitcoin shareholders.
The ongoing Bitcoin price recover is also driven by LUNA Foundation Guard’s (LFG), consistent buying and accumulation BTC. LFG has a total balance of 42,406 BTC and recently made a purchase of $100 million in Bitcoin.
Although LFG’s BTC accumulation did not have a significant impact on LUNA prices, it has fueled Bitcoin demand and positively influenced the price.
Analysts predicted that Bitcoin would rise to $50,000. Analysts have identified a bullish pattern in the Bitcoin price chart, and believe that the asset will break the psychological barrier of $50,000. Analysts believe that the Bitcoin price downside is limited to $29,000 as shown in the chart.