• The price of Bitcoin Cash (BCH) skyrockets as global inflation rises

  • On Wednesday, the price of Bitcoin Cash (BCH/USD) increased sharply as investors reflected on rising global inflation. The price of the coin reached a high of $720, the highest level since September 8. It has increased by more than 52% since its low in September.

    Global inflation is increasing.

    Consumer prices are rising sharply around the world, making cryptocurrencies such as Bitcoin and Bitcoin Cash more appealing to investors.

    The headline consumer price index (CPI) rose from 0.1 percent in September to 0.7 percent in October, according to data released by China’s statistics bureau on Wednesday. Inflation more than doubled from 0.7 percent to 1.5 percent year on year.

    Worse, the country’s producer price index (PPI) increased from 10.7 percent to 13.5 percent. This trend occurred as the country’s power prices rose sharply in October. Indeed, some Chinese provinces have ordered businesses to reduce their power consumption during peak hours.

    China’s inflation figures are critical for global inflation because the country manufactures the majority of today’s goods. It is the world’s leading manufacturer of packaging, furniture, and other small items that we use on a daily basis.

    Meanwhile, data from Germany’s statistical office revealed that consumer prices in the country increased in October. In October, the headline CPI increased from 4.1 percent to 4.5 percent. The harmonised inflation rate increased from 4.1 to 4.6 percent.

    The most shocking revelation came from the United States. According to statistics, the headline CPI increased from 5.4 percent to 6.2 percent. This was a much larger increase than analysts had predicted. It was also the most in more than 30 years. In other words, the inflation basket’s price increased from $274.14 to $276 in a month.

    As a result, these inflation figures may encourage more people to invest in assets such as gold and cryptocurrencies, which are frequently regarded as inflation hedges.

    Bitcoin Cash price forecast

    A closer look at the daily chart reveals that the Bitcoin Cash price has risen significantly today. By doing so, the coin managed to break through a key resistance level at $653, which it had previously struggled to break through. The price has risen above the ascending trendline, which is depicted in green. It has also risen above the 25-day moving average.

    As a result, the path of least resistance for the BCH price is upward. The next important level to keep an eye on is $800.

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