Bitcoin price reached a new peak, topping at $69,000. But the cryptocurrency failed to stay at this mark, dropping back to the earth.
On November 10, the bitcoin rate briefly rose to $69,000. The jump to a new all-time high was triggered by the release of US inflation data, which hit a multi-year high. According to the US Bureau of Labor Statistics, the consumer price index reached 6.2%, the highest level since October 1990. The level of core inflation, which does not take into account the increase in the cost of goods, showed an increase of 4.6%, which is the highest level since 1991. Gold also rose to its highest level since June after the inflation report.
Inflationary concerns contributed to the sharp rise of the bitcoin price. However, almost immediately after the price of bitcoin reached its new all-time high, traders rushed to take profits. This led to a drop by almost $7,000. As a result, the BTC rate fell below $63,000.
Meanwhile, centralized crypto exchanges continue to record a record outflow of user funds amid general bullish expectations. Investors prefer to keep BTC in their personal wallets instead of using coins in active trading. “As a result of continued exchange outflows, the aggregate BTC exchange balance has fallen to multiyear lows of 12.9% of circulating supply,” Glassnode wrote in a blog post.
According to Reuters, cryptocurrency exchange Coinbase reported a drop in trading volumes in the third quarter by almost 30% due to the low volatility of major crypto assets. Trading volumes fell to $327 billion in the third quarter from $462 billion in the second quarter. Bitcoin accounted for 19%, up from 24% last quarter. Total revenue fell to $1.31 billion from $2.23 billion in the previous quarter, which also fell short of investor expectations. Coinbase shares fell 13% overnight.