Ethereum (ETH) surged to a new high on Nov 8, while other top cryptocurrencies increased in price ahead of a critical US inflation report today.
The price of ETH rose by 3.30% in the last 24 hrs to $4,770, a first in its history. Bitcoin (BTC) also reclaimed $66,000, demonstrating the solid relationship between the two digital assets.
Inflationary pressure returns
Wall Street economists expected the US Consumer Price Index to increase by 5.8% before the release of the inflation report by the Bureau of Labor Statistics on Wednesday. That would be slightly higher than the 5.4% inflation rate recorded in Sept, the highest since 1990.
The most recent inflation rates came after the Federal Reserve’s policy meeting. The US central bank decided to implement its $120-billion-a-month asset-purchase program to lessen the effects of increasing consumer prices to lower them to the intended 2% target.
Yet, the Fed authorities maintained that inflation is “transitory” in nature. They decided to stick with their base interest rates near zero. This kept Bitcoins’ favorable momentum going, seeing its high returns during the ultra-low interest rates and massive bond-buying.
Ethereum To Continue Growing
The ongoing bull run breakout changed Ether’s profit target to near $4,800.
Bernhard Rzymelka, global markets managing supervisor at Goldman Sachs, expects Ethereum to hit $8,000 by Dec 2021 if the token continues tracking inflation expectations.
Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.