Bitcoin Jumps Above $41K, Rising With Nasdaq, S&P
The largest cryptocurrency whipsaws around the $40,000 level as markets digest elevated U.S. inflation readings.
Apr 13, 2022 at 4:50 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/43OMRC57FNAZVMTU4VMDUJBRWM.png)
Bitcoin price on April 13 (CoinDesk).
Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, surged past the key psychological price level of $40,000 on Wednesday as investors digested news that inflation hit a four-decade-high in March.
- Bitcoin was changing hands at below $40,000 earlier in the day, but at around 13:00 UTC (coordinated universal time), the price suddenly jumped above $41,000 in just an hour with high trading volume.
- Bitcoin's price is trying to find a support level after it dropped from $43,000 earlier this week.
- The move higher followed the stocks markets opening on a positive note, with the Nasdaq up 1.3% and the S&P 500 gaining 0.6%. Sentiment in the equity market is key as bitcoin's correlation with stocks remains at a high level.
- The consumer price index (CPI) for March rose 8.5% on rapidly increasing energy and food prices. While some economists argue that inflation probably peaked last month, the higher-than-expected number may strengthen the Federal Reserve's resolve to raise interest rates at its next meeting and shrink its balance sheet by as much as $95 billion a month.
- "Bitcoin is rallying as the bond market rethinks its aggressive Fed tightening bets," Edward Moya, an analyst at the foreign-exchange broker Oanda, said. "Bitcoin will continue to follow the lead set in equities, and right now optimism is growing that the U.S. consumer is still in good shape. Bitcoin seems like it could trade in a range from $38,000 to $48,000 as stocks might have limited upside this earnings season given the elevated geopolitical and inflation risks for corporate America."
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/www.coindesk.com/resizer/imb09KsNh9afdgQ4P24gQvq559Y=/arc-photo-coindesk/arc2-prod/public/DMIIPXHVZFBCPMOBTSEJ2YYG6U.png)
Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/D5YPEXRFYZBDJI2UQ62V645GSE.jpg)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/4P6AOJ47EBDUTKC76ZU6TBGBMM.jpg)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/36UADKSTYRFZDOUMXWIL57BABU.jpg)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/3TZNTMS5ORD4XN475U73UHLZGI.jpg)