Bitcoin and Ethereum have surged, with the latter reaching a new all-time high of $4,759, as of the time of writing. Speaking to CoinDesk, Yuya Hasegawa, crypto market analyst at Japan’s exchange bitbank, said that inflation-adjusted bond yield could be driving the Bitcoin price higher. Mr Hasegawa said: “Real yields sliding due to inflation fears may have caused the recent BTC rally.”
The rising prices in the last 24 hours come after data from the US Department of Treasury shows the 10-year real yield dipped to 1.09 percent on Friday.
Inflation is threatening fiat currencies after the multiple stimulus packages during the coronavirus lockdown.
On Friday, Coinbase spoke about the threat of rising inflation in its weekly email: “The inflation narrative still dominates the headlines and people are feeling the pinch globally.
“Whether it’s gas prices in the US, energy prices in Europe or food prices in Latin America, the headwinds of supply chain constraints and a shrinking labour force has investors looking for a store of value.”
Ethereum rival Solana has also turned green.
The Swiss-developed blockchain’s token, SOL, is up nearly 12,000 percent since the beginning of the year.
Solana hit its all-time-high of nearly $259.96 on Saturday,
Now the fourth-largest cryptocurrency by market value, SOL hit an all-time high of nearly $259.96 on Saturday. It’s now trading at around $249.
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Bitcoin is now considered a store of value that is a hedge against inflation.
However, traders announce the Bitcoin approaches the psychological level of $70,000
As of the time of writing Bitcoin was close to its all-time high of $66,974, which it achieved on Wednesday, October 20.
Bitcoin is now sitting at $65,905, as of the time of writing.
Ethereum has smashed through its former all-time-high to reach a new value of $4,779.
Dogecoin has experienced a rally of over 5 percent today to $0.27.
While Federal Reserve Chair Jerome Powell reiterated last week that price pressures may be transitory, although fear persists of rising inflation that could run out of control.
Mr Powell at last week’s Federal Reserve conference said: “Long-standing disparities weigh on the productive capacity of our economy.
“It can only realise its full potential if everyone has a solid chance to contribute to, and to reap the benefits of, broad-reaching prosperity.”