Bitcoin Drops 2% Amid Inflation Fears, GameStop Plans $1.3B Bitcoin Purchase
1min read Bitcoin experienced a volatile week, with its price fluctuating significantly. The coin's price reached a nearly three-week high of $88,474 on Monday but dipped to $82,480 by the end of the week, marking a nearly 2% decrease. This downturn was influenced by the U.S. Commerce Department's report that the core Personal Consumption Expenditures Price Index (PCE) increased by 0.4% in February, the largest monthly increase in over a year. This news heightened inflation fears, causing traders to become cautious with risk assets like Bitcoin and stocks, which also dropped on Friday.
Despite the market's volatility, there were notable developments in the Bitcoin ecosystem. American Bitcoin ETFs saw new investor cash inflows from Monday through Thursday, totaling approximately $196.4 million for the week. This influx suggests that investors view Bitcoin's current price, which is 24% below its January all-time high, as a buying opportunity following massive outflows in the previous month.
Ask Aime: What is the current influence of the U.S. Commerce Department's PCE report on Bitcoin's recent price swings and its future outlook?
GameStop, the video game retailer known for its meme stock status, announced significant changes to its investment strategy. On Tuesday, the company updated its Investment Policy to include "certain cryptocurrencies, including Bitcoin" in its balance sheet. The following day, gamestop revealed plans to raise $1.3 billion through debt to purchase Bitcoin, following a similar strategy employed by Strategy. While the initial announcement boosted gme stock prices, subsequent news of the debt raise led to a decline in investor enthusiasm.
In the mining sector, the world's largest mining conference, Mining Disrupt, took place in Fort Lauderdale. Engineers and vendors emphasized the importance of diversifying into AI data centers as Bitcoin's price and mining difficulty continue to rise. Additionally, there is growing interest among small businesses in mining Dogecoin (DOGE) using ASICs, indicating a shift in the mining landscape.
Brazil, the largest economy in Latin America, is considering adding Bitcoin to its strategic reserves. Pedro Giocondo Guerra, a high-ranking official in President Inácio Lula da Silva's administration, stated that purchasing and holding Bitcoin would be in the country's public interest. This move could inspire other nations to follow suit, given Brazil's significant crypto market and the poor performance of the Brazilian real last year.
In other news, a doctored video of President Trump discussing the Bitcoin whitepaper circulated on social media, sparking reactions from Bitcoin supporters. While Trump has recently shown support for Bitcoin and cryptocurrency, his past statements have been skeptical, describing Bitcoin as a "scam" and expressing disapproval.
