Panic in the market sent people to take refuge in Bitcoin.

Todays panic in the market and leap in BTC provides a glimpse at the psychology of where bitcoin is at in society.

Inflation numbers were much higher than what was to be expected and the market began to sell off rapidly. At the same time bitcoin saw its price jump to all time highs, Signaling that people view Bitcoin as a source of refuge.

The price jumping was kind of a opposite reaction to what I think should have happened. Bitcoin is more a hedge against monetary devaluation than just inflation. Yes inflation will cheapen the dollar in due time, but it will probably cause the FED to tighten which will strengthen the dollar for a bit. Still if we are in it for the Long term, the dollar is on shaky grounds and whatever policy the FED chooses to curve inflation will not be substantial enough to stop it.

I think this is partially why bitcoin came back to earth towards the evening. That and futures contracts being liquidated on both sides.

All of that said, the escape to bitcoin is a great signal that the population is seeing bitcoin as a safe haven to the monetary policies of the current fiat systems, and will only legitimize the asset going into the future.