Bitcoin's (BTC) toll hitting another all-fourth dimension high at $69,000, while Ether (ETH) continued its long slog toward $5,000 after reaching a new high at $4,868 earlier on Midweek. Shortly subsequently hit this fresh milestone, nonetheless, traders began taking profit, leading to a nearly $seven,000 drop, which plunged BTC's cost below $63,000.

Interestingly, the breakout was initiated right as a written report from the United states of america Bureau of Labor Statistics (BLS) showed a sharp 6.2% almanac ascent in the Consumer Price Alphabetize (CPI), a figure that has hit its highest mark in 30 years.

According to the BLS, rising energy costs fueled a rise in CPI, but for at least half-dozen months, analysts take tracked the rising costs of food and other goods. The electric current CPI is the highest it has been since October 1990. Core aggrandizement, a figure that ignores the touch on of the rising cost of goods, showed a four.vi% increment, a level not seen since 1991.

CPI data highlights record 30-twelvemonth loftier inflation charge per unit. Source: FRED

Amidst rise inflation, the Federal Reserve and the Biden assistants continue to bulletin that the situation is "under control," just equities markets reacted negatively to the news.

Despite the apropos news and slight pullback in traditional markets, BTC and ETH prices rose, a dynamic that analysts such as Anthony Pompliano refer to as "disproportionate toll action" where investors run across a red hot stock marketplace and unsustainable central bank monetary policymaking risk-on avails like Bitcoin as attractive investments and hedges confronting gold, the dollar and inflation.

According to Cointelegraph business editor Sam Bourgi, Bitcoin is viewed by many as the all-time "hard coin" alternative to sovereign currencies and:

"Bitcoin has outperformed gold, the most widely regarded aggrandizement hedge, by a considerable margin year-to-date, having gained over 130% compared with gold's 4% reject."
BTC/USDT daily chart: Source: TradingView

Before long after achieving these astronomical new heights, Bitcoin'south price roughshod back toward $62,700 before recovering slightly to around $64,500, while about altcoins endured near double-digit losses.

Even though the current downside movement is sure to shock some investors, slight corrections after reaching new all-time highs are a customary practice for Bitcoin.

From the perspective of technical assay, turn a profit-taking well-nigh all-fourth dimension highs and the need for a retest of lower back up levels are normal processes for most cryptocurrencies. In fact, a quick glance over discussions past many analysts and traders on Twitter shows that most expected BTC to revisit lower support levels at $64,000 and below before recapturing bullish momentum and moving higher.

The overall cryptocurrency market capitalization at present stands at $ii.91 trillion, and Bitcoin's authority charge per unit is 41.nine%.