Bitcoin was changing hands below $40,000 earlier in the day, but around 13:00 UTC, the price suddenly jumped above $41,000 in just an hour, with high trading volume.Read MoreFeedzy
Bitcoin (BTC), the largest cryptocurrency by market capitalization, surged past the key psychological price level of $40,000 on Wednesday as investors digested U.S. Labor Department data showing inflation climbing last month to a fresh four-decade-high.
Bitcoin was changing hands below $40,000 earlier in the day, but around 13:00 UTC (coordinated universal time) the price suddenly jumped above $41,000 in just an hour, with high trading volume.
Bitcoin’s price tries to find support after the its price dropped from $43,000-level starting this week.
The move followed suit of the stocks markets opening on a positive note, with the Nasdaq up 1.3% and the S&P 500 Index gaining 0.6% on the day. Sentiment in the equity market is key as bitcoin’s correlation with stocks remains at a high level.
“Bitcoin is rallying as the bond market rethinks its aggressive Fed tightening bets,” said Edward Moya, senior market analyst at the foreign-exchange broker Oanda. “Bitcoin will continue to follow the lead set in equities, and right now optimism is growing that the U.S. consumer is still in good shape. Bitcoin seems like it could trade in a range from $38,000 to $48,000 as stocks might have limited upside this earnings season given the elevated geopolitical and inflation risks for corporate America.”
Most popular cryptocurrencies jumped in tandem with Bitcoin: Ether (ETH) gained 1.6% and AVAX, the Avalanche blockchain’s token, jumped 4% on the day. Solana (SOL) is down 1.4% at press time.
On Tuesday, the U.S. Labor Department published Consumer Price Index (CPI) for March, which jumped to a four-decade high of 8.5%, slightly beating analysts’ expectations because of rapidly rising energy and food prices. While some economists argue that inflation probably peaked last month, the higher-than-expected data may strengthen the Federal Reserve’s resolve to hike funding rates in the next meeting and shrink its balance sheet by $95 billion a month.
“Bitcoin is rallying as the bond market rethinks its aggressive Fed tightening bets,” Oanda’s senior market analyst Edward Moya said. “Bitcoin will continue to follow the lead set in equities and right now optimism is growing that the US consumer is still in good shape. Bitcoin seems like it could trade in a range from $38,000 to $48,000 as stocks might have limited upside this earnings season given the elevated geopolitical and inflation risks for corporate America.”
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
TL;DR: PowerCompute mined 8.1 BTC in September, up 37% from a year earlier. Its month-end…
TL;DR: Strategy will report third-quarter 2026 results after US markets close on October 29 and…
TL;DR: US spot Bitcoin ETFs recorded $484.9 million in net outflows on October 7, according…
The research firm sees tokenized stocks, bonds and loans creating new markets for trading and…
Bitcoin Magazine WhiteBIT Integrates Lightning Network for Fast and Cheap Bitcoin Transactions The Lightning Network…
Bitcoin Magazine AI Coding Agents Drive Surge in Bitcoin Integration Requests: Breez Bitcoin software company…