The price of bitcoin rose 1% and hit a record high on Wednesday morning, trading near $68,000.
High inflation readings can lead investors to seek out alternative investments that may hold up better than cash or bonds, which often pay out a fixed amount.
Federal Reserve officials and many economists argued earlier in the year that inflation would prove to be “transitory,” but the hot reports have caused traders to bet on the central bank hiking rates in 2022.
He said that a tight labor market combined with rising energy prices and supply chain issues were driving prices higher.
The Fed announced last week it would begin reducing its monthly asset purchases, a process known as “tapering,” but Fed Chairman Jerome Powell maintained a dovish stance on inflation.
“Every time we have a trend in yields, you got the pushback from the Fed.