Bitcoin Breaches $10,000 as Australia Faces Down Worst Inflation Numbers On Record

Australian investors appear hesitant to dive into traditional markets this week, anticipating the release of the worst inflation records on record — as Bitcoin breaks through the $10,000 ceiling, hinting at potential bull run.

The SPI futures index dropped 0.45 percent, or 27 points n Sunday, revealing a potential easing on the S&P/ASX200 for Monday morning. The benchmark equity index hovered near the 6,000 point position late last week, ending the week 1.16 percent down at 6,024 points.

Australian market movements mirror US and European movements, with the Dow Jones Industrial Average falling 0.7 percent. 

Trepidation surrounding the impact of the COVID-19 pandemic and its impact on the Australian economy has seen both CBA and AMP capital forecast Australia’s consumer price index — a critical inflation benchmark — to drop two percent.

Inflation data in line with CBA and AMP Capital forecasting would represent the largest quarterly fall since inflation records began in 1948, taking the annual rate in a negative direction for the first time since 1997.

Digital Asset Markets Fire Up

While traditional markets may be taking a slow turn this last week, digital currency investors have displayed none of the hesitation present in their institutional counterparts. Bitcoin reached a two-month high of $10,135 at 10:05 UTC on Sunday, the highest value demonstrated by the crypto market leader since June 2.

The rapid price size saw Bitcoin capture 8 percent gains on a week to week basis. Similarly, Ethereum’s price skyrocketed to a 13-month high of over $300, reaching $319 early Friday afternoon.