Bitcoin

Bitcoin’s Recent Price Action Could Cause Concern About This Popular BTC Thesis, According to Blockchain Researcher

A blockchain researcher is issuing a warning to Bitcoin traders who imagine that BTC is a strong hedge towards inflation.

Lucas Outumuro, head of analysis on the blockchain intelligence agency IntoTheBlock, is questioning the thesis that BTC is a hedge towards inflation due to its finite provide of 21 million BTC.

In a latest publication, he factors out that Bitcoin’s newest price stumbles have coincided with skyrocketing inflation numbers.

“As indicators of accelerating inflation turned obvious, many acknowledged traders corresponding to Paul Tudor Jones noticed Bitcoin as a hedge.

Bitcoin’s latest lackluster efficiency could also be starting to diminish institutional traders’ hopes of it performing as an inflation hedge.”

Outumuro additionally notes on Twitter that Bitcoin’s price initially climbed however then dropped after the Consumer Price Index (CPI) launched excessive inflation numbers on Friday morning.

“Bitcoin is following the S&P 500 step-by-step immediately

After the discharge of the excessive CPI inflation numbers at 8:30 am, BTC climbed 2% however proceeded to drop as markets opened

Not wanting nice for the inflation hedge thesis…”

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Source: Lucas Outumuro/Twitter

Bitcoin is buying and selling at $48,172.97 at time of writing and is down greater than 9% from the place it was priced per week in the past.

But not all of BTC’s metrics look bearish, in accordance to Outumuro. Bitcoin’s weekly outflow off exchanges reached a five-month excessive, with practically $3 billion in BTC exiting centralized exchanges up to now week, in accordance to the researcher. Exchange outflows is usually a bullish indicator because the metric means that BTC traders intend to maintain on to their crypto belongings.

Read Outumuro’s full publication here.

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Featured Image: Shutterstock/Tithi Luadthong/Chuenmanuse

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