BTC slumps but holds above $60,000

The total market cap of all cryptocurrencies combined reached a new apex of $2.7 billion on Thursday, but that did little to move BTC prices. As of 5 PM EST, BTC is trading slightly lower, down half a percent at $61,050.

Some notable events this week regarding inflation include the Fed and the Bank of England’s decision to hold interest rates at near zero percent. However, these events did little to move Bitcoin, which has been looked at as a hedge against inflation even though they represent inflation continuing to rise or at least remain at elevated levels. Gold, which some may argue is a better tool to hedge against inflation did react, although it took days to do so and actually traded down on the day of the Fed’s announcement.

Last week, a similar statement from the European Central Bank to keep interest rates where they are, did move Bitcoin back above $60,000. After BTC traded below $60k in the previous trading session, I believe these announcements may have made the retracement from $67,000 more shallow than anticipated. So, although we don’t yet have a new ATH, BTC forming a base above $60k is still very bullish.

We could still see a pullback to $54,000 next week, but that is less of an uncertainty than a new ATH sometime this month. We still see the next all-time high coming in at around $70-$75k.

Much of the attention was drawn away from Bitcoin by certain alt. coins as well as Ethereum hitting record highs this week. But it is important to remember these coins only did so in the weeks following Bitcoin’s own ATH, and that any move up from them will likely follow Bitcoin’s assent.