Bitcoin
(BTC)
climbed
back
to
$70,000
Wednesday,
reversing
its
knee-jerk
dip
following
hotter-than-anticipated
U.S.
inflation
data
for
March.
BTC
slipped
nearly
4%
to
$67,500
during
early
U.S.
hours
after
a
government
report
showed
the
Consumer
Price
Index
(CPI)
rising
faster
than
analyst
expectations,
prompting
investors
to
temper
their
expectations
for
rate
cuts
this
year.
The
dip
echoed
through
multiple
asset
classes,
but
bitcoin
gradually
erased
all
its
losses,
and
was
up
over
1%
over
the
past
24
hours,
outperforming
U.S.
equities
and
gold,
both
of
which
finished
with
sizable
declines
for
the
day.
At
press
time,
bitcoin
had
slipped
a
bit
from
the
$70,000
level,
trading
at
$69,800.
Most
cryptocurrencies
lagged
behind
BTC,
with
the
broad-market
CoinDesk
20
Index
down
0.6%
during
the
same
period,
dragged
lower
by
a
5%-7%
decline
in
major
altcoins
polkadot
(DOT),
bitcoin
cash
(BCH),
near
(NEAR)
and
aptos
(APT).
Decentralized
exchange
Uniswap’s
governance
token
(UNI)
plummeted
more
than
10%
as
it
received
an
enforcement
notice
from
the
U.S.
Securities
and
Exchange
Commission,
foreshadowing
regulatory
actions
against
the
platform.
Digital
asset
hedge
fund
QCP
Capital
said
the
rebound
showcased
the
underlying
demand
for
bitcoin,
with
investors
seeing
dips
as
a
buying
opportunity.
“This
bounce
is
not
surprising
as
the
desk
continues
to
see
strong
demand
for
long-dated
BTC
calls
even
on
this
dip,”
QCP
said
in
a
Telegram
update.
“It
is
indicative
of
deep
structural
bullishness
in
BTC.”
Will
Clemente,
co-founder
of
Reflexivity
Research,
noted
in
an
X
post
that
the
ever-increasing
U.S.
debt
levels
are
more
important
for
the
big
picture
than
individual
CPI
readings,
and
the
most
likely
scenario
is
that
policymakers
will
let
inflation
run
higher
than
the
2%
target
to
help
inflate
the
debt.
“Bitcoin
is
an
insurance
against
this,”
Clemente
added.
UPDATE
(April
10,
21:25
UTC):
Adds
analyst
comment
from
QCP
Capital.