Inflation continues to rise? Bitcoin briefly retreats and rises above $60,000 again

After the Bitcoin ETF was officially launched, the price of Bitcoin once approached $67,000. As of press time, Bitcoin rose 1.49% on the day, and the price exceeded $61,816.83 per coin.

It is reported that after the launch of the first Bitcoin exchange-traded fund on Wall Street, market funds flocked to this product that tracks Bitcoin futures contracts. In just four trading days, $1.2 billion of funds poured into the ProShares Bitcoin Strategy ETF, pushing the price of Bitcoin to a record high. It is worth mentioning that this product has set several major fund industry records in succession: the fastest fund in the world to exceed $1 billion in size; the transaction volume on the first day of issuance exceeded $100 million, the second highest in history.
Wall Street's first Bitcoin ETF has been questioned for its crazy money-making. Daren Fonda and Avi Salzman pointed out that the ProShares Bitcoin Strategy ETF may not do a good job in tracking Bitcoin prices, and said that the time for an ETF that truly holds Bitcoin to be approved may take much longer than traditional assumptions.
Is Bitcoin no longer worth watching after the ETF craze?
Janet Yellen, the head of the U.S. Treasury Department, said price increases will continue until the end of 2022. Some believe that, technically speaking, inflation is still short-lived.
The rapid growth of Bitcoin over the past year has allowed investors to see the potential of Bitcoin to beat inflation. Instead of putting money into gold or real estate, many retail investors have entered the cryptocurrency industry.
Analysts at JPMorgan wrote that Bitcoin's recent rally is largely due to the perception that it is a better hedge against inflation than gold. Investors around the world are concerned about the speed of price increases, which has also rekindled their interest in inflation hedges, including Bitcoin.
In addition, the continued weakness of gold this year also proves that people see Bitcoin as a better investment option than the yellow metal. Therefore, despite rising global inflation, investors are selling gold and embracing cryptocurrencies instead. Data shows that more than $10 billion has been withdrawn from gold ETFs this year, and the ETF's physical gold reserves have also declined due to the sell-off. As of press time this year, the price of gold is $1,792.75 per ounce.
Inflation remains high, and voices of optimism about Bitcoin continue to rise. John Hathaway, a senior portfolio manager at precious metals investment group Sprott Asset Management, said, "These Bitcoin believers and I see the inflation risks of printing money as well."
Elian, dean of Queen's College, Cambridge University and chief economic adviser of Allianz Group, also said: "Now people tend to regard Bitcoin as a tool for portfolio diversification, and inflation is one of the catalysts. Bitcoin has attracted funds from gold."
Paul Tudor Jones, a legendary Wall Street investor and well-known hedge fund tycoon who became famous for accurately predicting the 1987 stock market crash, warned that inflationary pressure will be the number one threat to investors and recommended buying large amounts of anti-inflation assets. Compared with gold, cryptocurrency is currently a better choice.