Major coins traded in the red on Wednesday as the global cryptocurrency market cap fell 3.69% to $2.79 trillion, with Bitcoin BTC/USD down 3.23% at $64,676.43 over 24 hours.
What Happened: For the week, the apex cryptocurrency has risen 2.93%.
Ethereum ETH/USD, the second-largest coin by market cap, fell 2.15% to $4,607.87 over 24 hours. Over the week it inched up 0.95%.
DOGE dropped 6.05% to $0.26 over 24 hours. For the week, the meme coin has fallen 3.75%.
Shiba Inu declined 8.62% to $0.00004988 over 24 hours. Over a seven-day period, it has shrunk 11.43%.
The top 24 hour gainers, as per CoinMarketCap data, were IoTeX, Mina, and Loopring.
IoTeX surged 109.66% to $0.23, Mina gained 20.33% to $5.13, and Loopring was up 12.05% to $3.11 in the period.
IoTex hit an all-time high of $0.2554 on Wednesday. At press time, it was trading 9.45% below that level.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: Annual inflation surged to 6.2% in October, which is the highest level since November 1990. The rise in CPI numbers beats expectations by analysts of a 5.8% reading, as per an earlier report.
Nancy David, the founder of Quadratic Capital Management, noted that if the inflation doesn’t subside the U.S. Federal Reserve “may need to taper at a more substantial rate and hike interest rates, which could hurt stocks and bonds.”
David Marcus, who leads Facebook Inc’s FB Novi digital wallet, said on Twitter that inflation vindicates Satoshi Nakamoto, the pseudonymous creator or creators of Bitcoin. Notably, BTC is a deflationary cryptocurrency. Facebook is in the process of rebranding as “Meta.”
Inflation is already here and it is not “transitory,” as per Olympic rower, Bitcoin bull and founder of Gemini exchange, Cameron Winklevoss.
Entrepreneur investor Anthony Pompliano noted the inflation numbers and said Bitcoin immediately “ripped to an all-time high” in a tweet.
On Wednesday, both Bitcoin and Ethereum rose to new highs. BTC touched an all-time high of $68,789.63, while ETH rose to new highs of $4,859.50.
Freddie Evans, a sales trader at the United Kingdom-based digital asset broker GlobalBlock, noted that November is regularly a positive month for cryptocurrencies and analysts are still bullish.
“Analysts are still holding on to extremely bullish November predictions, with this month regularly being a positive one for crypto,” wrote Evans in an emailed note.
Inflation has been construed as a positive for Bitcoin by experts such Carl Icahn, who noted that “If inflation gets rampant, I guess [Bitcoin] does have value” last month.
Last month, JPMorgan told its clients that institutional investors appear to be “returning to Bitcoin” seeing it as a better inflation hedge than gold.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
