Bitcoin (BTC) is on the rise again, with its value reaching new highs recently. This comes amid fears of rising inflation in the U.S. economy, which is prompting investors to seek alternative assets to protect their wealth.
According to recent reports, the U.S. consumer price index (CPI) rose 0.4% in February, the largest increase in nearly nine years. This has raised concerns about inflation, which occurs when there is too much money in circulation, causing the value of money to decrease and prices to increase.
In response, investors are turning to bitcoin as a safe haven that is not affected by inflation. The decentralized nature of bitcoin and its limited supply make it a popular choice among investors looking to protect their wealth. As a result, the value of bitcoin has risen more than 60 percent this year, reaching a new all-time high of more than $61,000.
Bitcoin’s rise is also being fueled by its increasing adoption by institutional investors, who are increasingly viewing it as a viable investment option. Companies such as Tesla and MicroStrategy have invested billions of dollars in bitcoin, and more are expected to follow suit.
At the time of writing, the Bitcoin (BTC) price is $26,016, still up nearly 16% over 24 hours. The overall market capitalization of the crypto market, meanwhile, is now over $1.1 trillion.