Summary
Bitcoin surged to a new 2024 high after recovering from a brief dip caused by disappointing inflation data. Analysts believe that Bitcoin follows both risk-on and risk-off narratives, and monetary easing will likely push it higher. Ether also saw gains, while stocks rebounded after a drop following the CPI print. Inflation data from the UK was more positive, helping stock futures rise. Stocks did not decline because of inflation fears, but because the CPI report did not meet overly optimistic assumptions.
Key Points
1. Bitcoin surged to a new 2024 high on Wednesday, rebounding from a brief dip on Tuesday caused by disappointing inflation data.
2. Bitcoin’s turnaround is a sign that the asset follows both a risk-on and risk-off narrative, and it may still be treated as a risk asset in investors’ portfolios during sharp stock market corrections.
3. Ether also saw gains on Wednesday, increasing close to 5%, while stocks were on the rebound as well, although they had not yet fully recovered from losses spurred by Tuesday’s CPI print.