- The weekend flash collapse saw it fall as much as 21% on Saturday.
- Today, Bitcoin surged 4.4 percent to $50,101 in the New York trade.
Today’s Bitcoin price has again relieved investors. Bitcoin rose after a survey revealed the fastest rise in US consumer prices in almost four decades. Due to its limited supply, Bitcoin, the most valuable cryptocurrency, has long been marketed as an inflation hedge. On Friday, Bitcoin surged 4.4 percent to $50,101 in New York trade. Since a weekend flash collapse that saw it fall as much as 21% on Saturday, the currency today had been trading around $50,000 but plummeted back again to the $47500 level.
Crypto supporters have long suggested that Bitcoin and other digital assets might hedge against market volatility since they are unique investment options. The computer mechanism that oversees issuance allows just 21 million Bitcoin to be issued, and that number is not likely to be reached for decades.
Adopting BTC as Price hedge
Many renowned Wall Street investors and experts believe in adopting cryptocurrency as a price hedge. Paul Tudor Jones, a famous hedge fund manager, has indicated he loves it as wealth storage. Meanwhile, MicroStrategy Inc.’s Michael Saylor claimed the Fed’s easing of inflation policies influenced his decision to invest in Bitcoin.
Some fear bitcoin is repeating history, as it fell from 19k to 3k in 2018. But there are many counter-arguments. According to Marc Chandler of Bannockburn Global Forex, relationships may not be what they seem. Stocks also rose after the revelation so that the association may be with risk assets, he argues.
Inflation-hedge advocates think Bitcoin hasn’t been around long enough. Plus, it’s too much like a speculative asset, says Cam Harvey, a Duke Professor, and Research Affiliates partner.
