Bitcoin experienced a downturn amidst rising US inflation, posing a significant challenge. However, the projection for reaching $100,000 remains valid.
Impact of Inflation on the Market
On February 12, Bitcoin fell by 1.8% following the release of US CPI data showing a 3% year-over-year increase. This news sparked a price correction and a retest of the $94,200 support level. The stock market also reacted negatively, reinforcing the correlation between equities and digital assets.
Risks for Bitcoin Investors
Bitcoin investors faced additional pressure from SoftBank's $2.4 billion loss in Q4. This triggered a shift toward caution and a strengthening US dollar. Nonetheless, Bitcoin remains an attractive asset against long-term inflation risks.
Challenges for Miners
A decline in mining profitability, measured by the Hashrate Price Index, added to Bitcoin holders' concerns. Reduced demand for block space may compel some mining operations to shut down.
Despite challenging economic conditions, Bitcoin continues to be a significant low-risk asset alternative. The goal of $100,000 remains achievable.
