Bitcoin has once again shattered records, reaching an unprecedented high of $124,515 before experiencing a sharp pullback. This surge comes amidst a stronger-than-expected inflation report, highlighting the cryptocurrency's notorious volatility.
The Inflation Impact
Minutes after the US wholesale inflation data revealed its fastest pace in three years, Bitcoin dropped 4.3%. This reaction underscores the digital currency's sensitivity to macroeconomic indicators, mirroring the immediate downturn in stock markets.
A Year of Growth
Despite these fluctuations, Bitcoin has been on an upward trajectory for most of the past year. Analysts attribute this growth to a friendly legislative climate in Washington, fostering investor confidence in riskier assets.
As investors navigate these turbulent waters, the question remains: Is Bitcoin a safe haven or a speculative bubble?
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