Highest Inflation Reported in EU Causes Bitcoin Price to Rise Over $23.5K
On August 18, the trading price of Bitcoin experienced a significant surge. The trading price of Bitcoin (BTC) recorded another small level rally that helped pushed the trading price of Bitcoin higher.
This time, the major factor that help push the trading price of Bitcoin was not one from within the crypto-verse. Instead, the factor that helped form a rally in favor of Bitcoin was the EU inflation rate.
Highest Ever Inflation Rate in EU
According to the latest report from the European Union (EU), the inflation rate for Europe was shared. It was thought that the inflation rate in the EU would be close to the likes of the United States.
Shockingly, the result was completely different from the expectations of the investors and the economists. The data shows that the inflation rate recorded in the EU for the month of July was 8.9%.
A look at the inflation rate of the EU for the month of June shows that it was at 8.6%. This means that the inflation rate in the EU has experienced a rise instead of going down.
The EU has announced that this is the highest inflation rate ever that has been recorded for the EU. This goes to show that the inflation rate in the EU has been rising every passing month, a strong indication that the situation may get worse.
Impact on the Price of Bitcoin
Just as the inflation rate for the EU region was announced, the trading price of Bitcoin experienced a spike. More than 24 hours back, the trading price recorded for Bitcoin was at a low of $23k.
Following the announcement of the EU inflation rise, the trading price of Bitcoin rose and crossed the $25k benchmark.
Due to constant fluctuation in the price of Bitcoin, the $23k mark had become the support level for Bitcoin. On the other hand, the $23.5k mark was acting as the resistance level for the largest cryptocurrency.
Asset Drawdown Concerns
In the running week, the fears of the trading prices of the digital assets being dragged down have increased. From the start of the week until now, the fear has grown deeper and the situation hasn’t gotten any better.
One of the examples of this particular trend is the price movement of BTC and ETH. Despite making several attempts, the investors have failed to push either of the digital assets over their strong resistance marks.
This is because there is too much economic fear in the air that is hindering the investors from making investments with peace of mind. Even the analysts are not pointing to any strong rallies in the upcoming days.
Therefore, the confidence level of the investors is stale and they are looking for strong indications before they can start investing in cryptocurrencies.
Bitcoin Witnesses Investments from the EU
However, as there are fears of devaluation of the euro, people in Europe are aiming to hedge their savings. In times of emergency, Bitcoin is proving to be a hedge so the investments are growing in the largest cryptocurrency.