The Bitcoin Cash (BCH/USD) price rose sharply on Wednesday as investors reflected on the rising global inflation. The coin’s price jumped to a high of $720, which was the highest level since September 8. It has risen by more than 52% from its lowest level in September.
Global inflation rising
Consumer prices are rising sharply globally, which is making cryptocurrencies like Bitcoin and Bitcoin Cash more attractive to investors.
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On Wednesday, data published by China’s statistics bureau showed that the headline consumer price index (CPI) rose from 0.1% in September to 0.7% in October. On a year-on-year basis, inflation more than doubled from 0.7% to 1.5%.
Worse, the producer price index (PPI) in the country surged from 10.7% to 13.5%. This trend happened as the price of power in the country rose sharply in October. Indeed, some Chinese provinces ordered companies to reduce their power intake during peak period.
China’s inflation numbers are essential for global inflation because the country manufactures most of the items used today. It is the leading manufacturer of packaging, furniture, and other small items we use every day.
Meanwhile, data by the German statistics agency also revealed that consumer prices in the country rose in October. The headline CPI jumped from 4.1% in September to 4.5% in October. The harmonised inflation rose from 4.1% to 4.6%.
The biggest shocker came from the United States. Data by the statistics agency showed that the headline CPI jumped from 5.4% to 6.2%. This was a substantial increase than what analysts were expecting. It was also the highest number in more than 30 years. In other words, the price of the inflation basket rose from $274.14 to $276 in a month.
Therefore, these inflation numbers could push more people to assets like gold and cryptocurrencies that are often seen as hedges against inflation.
Bitcoin Cash price prediction
A closer look at the daily chart shows that the Bitcoin Cash price jumped sharply today. By so doing, the coin managed to move above the key resistance level at $653, where it struggled to move above several times recently. The price has moved above the ascending trendline that is shown in green. Also, it has rallied above the 25-day moving average.
Therefore, the path of the least resistance for the BCH price is up. The next key level to watch will be $800.
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