Overview of the Article
• Bitcoin has broken through the $27,000 barrier for the first time.
• Ethereum has seen a 24.75% increase in value to reach $1,794.
• Former Coinbase CTO Balaji Srinivasan predicts that Bitcoin could reach $1 million in 90 days.
Bitcoin Reaches All-Time High
Bitcoin, the world’s largest cryptocurrency by market capitalization, recently made headlines when it broke through the $27,000 barrier for the first time. This surge in price has sparked speculation among investors and analysts about where Bitcoin is headed next. Simultaneously, Ethereum also drew strong buying interest and appreciated by 24.75%, reaching the mark of $1,794.
Impact of US Inflation on Cryptocurrency Values
The upward rally of both cryptocurrencies can be attributed to inflation in the United States rather than hyperinflation. This indicates that there is a decrease in demand for USD as investors look towards alternative forms of currency to safeguard their assets against devaluation due to inflation or hyperinflation of USD over time. As such, decentralized currencies like Bitcoin are viewed as more stable investments and have increased demand driving up its price even further.
Former Coinbase CTO’s Bullish Prediction
The bullish prediction by former Coinbase chief technology officer Balaji Srinivasan that Bitcoin will reach $1 million within 90 days was perceived as an additional factor that encouraged people to invest in Bitcoin which drove up its demand and prices even higher.
Risk-On Wave In Cryptocurrency Market Amid US Financial Crisis
The global cryptocurrency market continues to display a bullish sentiment with prices increasing above pre-pandemic levels due to increasing inflation rates in the US resulting from Federal Reserve’s monetary policy which increases money supply leading investors to seek out alternative forms of currency like Bitcoin for protection against devaluation caused by dollar inflation or hyperinflation over time .