Bitcoin Forum

The US Dollar's inflation is on the rise as the pandemic coupled with the Russia-Ukraine crisis have damaged the global economy. Any negative effects on the US Dollar will surely affect other countries' economies, since it's the world's reserve currency. Considering that inflation has increased at a fast pace since the start of 2020, scarce assets/commodities like Gold and Bitcoin should've increased tenfold by now. Yet, Bitcoin is struggling to reach a new All-time-high in price while Gold's been unable to get past $1.9k. In the crypto market, Bitcoin is the one cryptocurrency that moves everything with it. So if Bitcoin goes down, so will the rest of the other coins being traded on the market.

My question is why isn't crypto rising in price if inflation on major Fiat currencies have soared like crazy? Am I missing something here? It's a shame since Bitcoin was long hailed to be a safe-haven asset like Gold. Your input will be greatly appreciated. Thank you. :)

Because the Fed is tightening the balance sheet through QT and rate hikes, causing investors and speculators in risk assets, like stocks, commodities, and cryptocurrencies to sell.

But ser, in Bitcoin's situation, ZOOM OUT. It has increased by MORE than ten-fold from under $1.00 to more than $10,000, and in my opinion, still in its path of price discovery to $100,000. 8)

Most crypto don't rise and should never rise because they're scams, or full of bugs, or both.
So let's just turn to bitcoin. And bitcoin price does rise, but it does it in waves. As said, zoom out. A pretty good comparison for Bitcoin may be to compare the price every 4 years. You'll see them rise.
Inflation is also just a number you don't feel clearly in the same way for everything. Bread price may have went over the roof and meat price may not feel the inflation yet. It's just an example, it doesn't have to be accurate (I'm almost sure it isn't). But inflation makes electricity more expensive and - sooner or later - that has to become visible in the price, else certain miners will have to unplug their gears.

Also, never forget that gold is overrated, since it's not so scarce and we don't even know for sure how scarce it is in the universe (I don't think that it's easy to count how many suns have exploded since the big bang, and that's what creates gold).
And.. just look at the charts, gold is falling lately: https://www.tradingview.com/symbols/XAUUSD/

It really affects many countries even as we speaks, but i think the major cause is the currency in use, USD as you've said is the world reserve currency and US is experiencing inflation which implies indirectly that the whole world is hold to ransom by participating in the ongoing inflation except for those that true their economy byepass fiat currency and make use of bitcoin, it is earlier the better every country to see bitcoin as a currency that can evade the impact of inflation on their economy system. thereby adopting it.

Crypto is valuable. What do you define the value with ? There are certain things that are still very important to consider:
1. Long term investment
2. Alternative option as contrast to government lead investment opportunities
3. Better online job opportunities
4. Very valuable for trading right now
5. Presenting an amazing buying opportunity for investors ( Lower the price higher will be profit perse)

I think crypto is extremely valuable and you cannot just define it using things like: 'its price' I know the usability is different in different parts of the world but it's still a good option and during inflation all the markets are hit.

Gold all-time-high is $2,074.60. Although, the price on exchanges would be different but yet similar.

Yes, if bitcoin is increasing in price and marketcap, altcoins are also going to be increasing in price and marketcap as well.

Let me be specific and only focus on bitcoin because many altcoins are shit and dead coins.

Bitcoin was once worth less than $1
Bitcoin grew over $1, $10, $100, $1000, $10000.
Bitcoin now at $30000

Check this also:
Price high 2017 $19700
BTC Price low 2018 $ $4040
BTC Price high 2019 $ $13970
BTC price low 2020 $ $3800
BTC price high after 2020 halving $ $69000
Now at $30000

It is clear that bitcoin is a speculative asset but a save haven in long term.


If you invest bitcoin in long term, like 4 years or more, it is a safe haven. If you invest on bitcoin in short term, like 6 months or a year, it is a speculative asset.

There is nothing bad to hold bitcoin in long term, then, you will realize that it is a safe haven.

As you look closer, Bitcoin in 2017 is last quarter of the year it was nearly 20k, now inflation hits hard and it is around 30k USD. If you compare them in terms of purchasing power, the difference is not too far and what you can buy with those money you will only have a little bit of now. I was wondering also why is it like this, did bitcoin really is the future that most of us are awaiting for? I guess it should be at the price of a hundred dollars or more at this moment but it ain't giving us hope as we see it.

I think the main way bitcoin is designed to contain inflation, as supply is limited and known and the creation of new bitcoins will diminish over time in a predictable way.
and there will only be 21 million bitcoins, and every four years the number of bitcoins mined is halved and if you look at bitcoin in the long term, I think bitcoin is easy to predict. Because bitcoin's next long term goal is to reach 100k and this is good to be able to protect their wealth and also to protect themselves from inflation.

With almost 10% inflation per year from last few year, USD sure lose so much value and it seems it is going to do same for coming years too but it doesn't mean crypto will go the other way. To better understand the reason we first have to know what is causing inflation of money and how it is also effecting crypto too.
Like any other physical currencies, Crypto is also invested by peoples and if those who are investing are affected by money inflation then the crypto itself heavily effected too and this is what happening now. Crypto only rises when the investor go all in but with current situation everyone is playing safe and don't want to take risk in crypto so it is going down each day for now.

The answer to this question can be observed in the history of crypto pump and dumps.

Over the years there have been many cases where whale investors targeted low trading volume assets. Low trading volume makes it easier to break down natural market mechanic barriers to price manipulation. This makes it easy to get in. Jack up the price of an asset. And get out with a good profit.

While it is harder to achieve this with assets like bitcoin that trade in higher volume. It is still an achievable goal for big institutional investors who trade in the highest volumes.

As bitcoin has become more available to large institutional investors, its price trends have come to mirror the stock market.

Traders with the most liquidity are trading bitcoin as if it were a stock, rather than an inflation protected asset. That is the primary reason behind our current trends.

We just did a major increase for the crypto market for the past two years and as we know, whenever it happens then the correction should come next.
Well, right now, it's not just a correction but a probable bear market that should exist for an estimation of a year or lesser than that, hopefully. Do not worry, the crypto market especially for the specific ones won't go nowhere but to that valuation and opinion that you have said that they should be high due to inflation.

First, bitcoin is a cryptocurrency, but it is in a different class from the rest of the cryptocurrencies. So, it will be right you direct the question to only bitcoin.

Secondly, let me answer based on bitcoin. Most times we see bitcoin from a short term rise and fall but on the long run, bitcoin has overall being in a bullish trend since it's creation.

Thirdly, bitcoin react to the happening in the economy. It doesn't just rise and fall at will. It is me and you that will push bitcoin to $100,000. Either there is more adoption of bitcoin or me and you will be ready to buy about x3 of what we own currently to push bitcoin higher than it's ATH.

Finally, when there is inflation, we tend to care much of what we will eat and survive. It is he that has fed well that will think about investment. So, if the economy is fine bitcoin will flourish along side. Everything is interdependent.

I have a feeling that a lot of what we're seeing in the markets, i.e., crashes/corrections/you-name-it, has more to do with interest rates rising and the fact that asset prices had risen to sky-high levels over the past 10+ years and those kinds of trends never continue forever.  Prices had to come down to earth eventually.

The Russia/Ukraine conflict probably has something to do with it as well.  Oh, as far as gold not being able to break $1900, I'd say that sounds about right to me.  I'm not even sure why it's worth as much as it is these days, but what I've noticed is that investors don't seem to be flocking to precious metals when economic conditions become uncertain or unstable--at least not as much as they used to.

If I had to give a glib answer to the question posed in the thread title, I'd ask if you remember what bitcoin was selling for when the COVID pandemic hit (which seems like only yesterday).  If you use that as a point of reference, you'd probably be happy with bitcoin at $30k.

Pretty much what was said in the first reply. It’s trading like a risk on asset and tied to the stock market especially the tech stock index the nasdaq 100.

Until we see any type of decoupling it will keep following it. Many market makers and arbs are pretty much following the nasdaq and copying any major moves. So until we get a disconnection somewhere, where crypto rises and nasdaq is flat or downwards. It will be bearish.

The more Bitcoin becomes more "mainstream", with more and more mainstream investors coming in that are more learned about the legacy financial system, then I believe Bitcoin will be more correlated with mainstream markets than we have witnessed before. It's simply part of the evolution of a technology being accepted by society, like the internet, the telephone, or air travel. But will that stop Bitcoin from its price discovery to six digits? NO, there are some features of Bitcoin that have not been priced in yet.

That sucks. I thought Bitcoin's price moved regardless of what happens in the real world. But now, it moves along with the stock market and what actions central banks do against the economy. This way, Bitcoin and other cryptocurrencies cannot serve as an alternative to the current financial system. There are still a lot of people who don't know anything about Bitcoin, so I'd say we're still in the very beginnings of crypto's mainstream adoption.

With what happened with LUNA lately, it's going to take a little longer before the crypto market rises back to its former glory. As long as everything remains decentralized, there should be nothing to worry about. Just my opinion :)

Inflation hit the fiat prices hard but what it actually does is made the consumer goods and services to be more expensive than what the government data shows which means people are spending more money so less money in their hands to save and invest which is one of the reason why cryptocurrency isn't rising as the hike of inflation and the next reason could be the bear cycle, we might entered into the bear cycle a long way back but hike in the inflation put a gradual growth which nullified the sudden dump of bear cycle.

Well, the answer is pretty simple.
For any assets to rise you don't need inflation or deflation, you need something else, and that's ....ta dam!!!! Money!
You need people to buy more bitcoin with more $ than the ones willing to sell for $ and on top of that you need to take care of a certain 30 million, a daily problem in blocks mined.  ;)

Now, totally contrarian to the popular belief, when do people like to invest and risk money? When their job is secure, they have cheap food and rent and transportation, no crisis insight, or when they face unemployment, they spend half of their wage on basic necessities, they are afraid they might not afford food or even the rent when they are concern with the rising cost of raising a kid?
So, despite nearly everyone thinking we need a new ww3, economic crisis, famine, plague or other to see BTC rise to a new ATH, once you don't need a few million to do so but trillions, you need people with money and with no concern of losing that money at all, not a scared middle and lower class that throws 5$ a month on some altcoin.


Why not? Why would you expect bitcoin to go against this trend, just because it's an alternative?
A bicycle is an alternative to a car but it still has round wheels and you drive it on a street and you get fined for not having a light or a helmet!

Bitcoin is based on trust, the trust of being only 21 million, the trust of knowing there won't be more printed, the trust of knowing those are your coins, but at the same time, trust can be shattered, and this is what's happening now, some believe the value should be lower and their numbers offset the ones that think the opposite.
It's the perfect free market based on what people think and not what somebody else decided for them!
But not everybody likes a free market when it's going down!

Bitcoin isn't full proof investment right now. Most of the money which is into bitcoin economics is coming from the institutional investors and other whales. Obviously with the current market crash they need to compensate their real world assets and the only way to do is by selling off the bitcoin and using the fiat for the same.

I don't think there is any easier explanation to this rather than this. However, its also trendy these days, as the market goes down in real world, it hampers bitcoin drastically. It will come back as the economics settle in circulation from these big players.

Crypto is inherently tied to FIAT and what's going on with the economy, it's not in its own bubble. In times of economic distress (inflation, food shortages, war, overblown housing prices et.) people tend to buckle down, and that means not investing in anything. And BTC is not even close to being a safe haven since it's volatility and its low utilisation in the real world is definitely something that will turn away people who want to escape the harsh economic situations. Nor is gold or anything for that matter. What most people are worried about is how they will pay their bills and food, and BTC can't really help with that (that much). So to sum it up, crypto rises when regular people start investing, but when the economic situation worsens, those people tend to stay on the sidelines and what crypto is left with are investors who have money for investing and are not worried about it having to be a solution for a specific economic problem they have. And as we see, those people are not enough.

Just as you are asking the question, I would like to ask the opposite. In terms of value and time that you are desiring for it, are you expecting things that don't go as expected? Some of the people above have also explained, which I find very clear, is BTC attractive and safe or not. I think it is not based on someone's judgment but your own opinion. What do you think? Personally, I still see the money I used to buy BTC always has many benefits, and even with recent developments, I also see some opportunities for myself. Although many people are panicking, I still have to admit that it is happening to me that everything is still very safe and I am grateful for this.

The inflation rate is definitely rising in the long and midterm and during this time when the inflation rate is increasing the fiat and traditional money is losing its value against many other assets, so if you check the financial markets in long term you can easily understand how the price is raising. The bitcoin market is one of them and increasing its price in long term but during the time when the market is uptrend there are some events and possibilities to happen for the price correction is of them and besides that markets crash and price collapse is another thing but even after all these possibilities still if you check the char in long term you can see the true uptrend price movements.

Interest rates play an important role today. and crypto in the bearish trend cycle. so This is the answer for your question. To suppress inflation, the Fed increased interest rates gradually starting last month. at the same time the crypto market is in a bear trend, so people are more interested in investing elsewhere than buying crypto which is clearly down.

Bitcoin is inherently tied to conventional economy. Investment in any asset is bound to other economic assets. The fall in fiat economy and financial institution will also conveyed in bitcoin economy. Bitcoin is not the safest heaven. But it is always a good asset to keep

You were here during 2014, before many of us. I would believe that you among most of the people would have already understood Bitcoin's open-market induced volatility.

Plus what you're saying about "cannot serve as an alternative to the legacy financial system" is debatable. Bitcoin functions as well during bull markets, and bear markets, producing block after block without downtime. The Dark Markets continue, Bitcoin casinos continue, everything continues.

Well, Bitcoin should be about $60-70,000 if not for how its master was badly treated. I hope people understand.

I actually agree it  should be  so called safe haven in times of uncertainty. Price could still rise if you treat its master right. Why not get the master a sustable signature to earn some Bitcoin from his works and posts. Or don't you think it's right for him to also benefit from a future rise in price?

I think when inflation increases then people really need cash so they sell coins, this is what makes crypto experience a decline, and I think this is normal, I also often sell crypto because I really need cash.

Of course. Bitcoin has always been volatile, but I was surprised to see that there were no positive price movements even though Fiat currencies are experiencing high inflation rates right now. If only people relied on Bitcoin as a unit of account instead of Fiat, things would've been much better. I'm talking about spending 1 Bitcoin without the need to know its current value in Fiat. 1 Bitcoin = 1 Bitcoin after all, right? But the whole world goes around Fiat (the Fiat standard) so this is very unlikely to happen anytime soon.

If Bitcoin becomes the main unit of account, then it would serve as an alternative to the existing financial system. Some governments are adopting Bitcoin as legal tender, but that's not enough to "hyperbitcoinize" the world. I wouldn't worry about that as long as decentralization prevails. Just my opinion :)

we were led to believe bitcoin was the best "safe haven" in times of economical uncertainty (like the current US recession) and war that eventually hit the world economy (russia-ukraine) because the market was yet to experience something of that magnitude, in a way we were gullible (?) and it was easy for some people to convince others that btc was going to go to the moon during a financial crisis, so the grand majority of the market set high expectations around btc if such turbulent events were to occur. Now we're going through those terrible events and it's ugly and obviously we weren't prepared to the punch in the face (financial crisis and a btc crash). Maybe those things about "btc safe haven" were true before the big investment firms, bankers and wall street entered the crypto market, but that ship sailed a long time ago and the btc price now mirrors traditional markets which are currently on a downtrend and you can be sure (sadly) that btc will follow that trend

maybe after the 2017 bull run, but prior to that literally nobody believed btc was tied to global or tradional markets.

Also the feeling of losing something huge is one of the biggest reason of it since there are some people which is open minded on things they settle with them. For what's happening on outside world and bitcoin price still dumped then maybe we should wait and see on which price should we enter.

I also sell some of my bitcoin earnings to use it on personal matters, but I also make sure that I still havea huge balance to be save for future.

The inflation crisis is fairly unique because Bitcoin hasn't been around long enough to truly test the waters of an inflation crisis. USD hasn't experienced this sort of inflation since the 1980's, and the European Union is having challenges of inflation of their own. We would need to wait a bit longer to truly see how the market reacts to Bitcoin and inflation because usually the inflation target is 2% annually and it's only post-COVID where most countries are having extreme challenges with inflation. If USD inflation spirals out of control more than it already has, I could see people using Bitcoin as a safe haven driving up the cost but the state of the global economy needs to be considered too. If people don't have money to invest, it's conceivable that crypto would less valuable in congruence to every other asset which price is in the gutter at the moment.

Exactly, immediately the economy experiences some applied amount of unusual inflation, prices of things tend to go up immediately, the supply of coins becomes excessive that period and subsequently, excessive supply of it definitely and mostly leads to declination in the value of the Bitcoin, hence the bearishness occurs with immediate effect.

But in all, the point is, irrespective of the inflation experienced with Fiat, it hardly and rarely ever extends to Bitcoin which is one very good thing about Bitcoin.

Perhaps it hasn't really been established that Bitcoin is a safe haven? It is definitely a rising store of value and asset, but not really one to which you can safely run during times of a falling fiat or a crazy inflation or a crashing stock market or an invasion. As a matter of fact, the pattern has somehow pointed to Bitcoin's price moving more or less like the traditional market, although this is debatable. What is established is that Bitcoin will give us a good return in the long run. So I guess it's better to stick to HODLing despite the short-term price fluctuations.

Many are just afraid with current condition without knowing the real scenario happen to the market. And if there's no huge news lik Luna tragic incident we might not see this price dip since for sure many will turn their attention on bitcoin because its starting to gain momentum of adoption especially when certain countries legalize it and many people use thia for their transactions.

With the Luna incident, it had a fearful effect on investors, but before that, because of high inflation, the USA raised interest rates, so the stock and cryptocurrency markets were affected. Of course, with the bearish season this time it happened because of the withdrawal of investor funds from cryptocurrencies and of course later investors will return along with the news of the fomo that occurred

Asking a general question on why crypto isn't rising amid the inflation on major fiat currencies hope you know most crypto are shit coin. It will be more better if you narrowed your sampling method on Bitcoin alone at least that way you can evaluate with good statistical proof how much Bitcoin has grown in the past 4 years.Not to mention how  Bitcoin grew from $1 to $68k in a space of 14 years. Gold and other valuables has been since time memorial with steady centralized price manipulation yet Bitcoin still stands above $30k. Diversified portfolio could be the only way to satisfy your quest

Both of those situations coming back to back caused the big crash for sure. I mean FED getting the money back from the market is a big deal for sure, and they will say that there will be some sort of situation where they will pump that money back again eventually, they will increase the rates to a point where the market will need more money eventually again, and they will drop the interest rates again which will pump a ton of money back to the market.

If we wait long enough then we will see that happening in the near future. I just hope that we get to see that, it is not going to be that much of a trouble and it is going to be quite common situation as well and we are going to end up seeing that very soon, so holding is very important.

Between people who bought accounts, and people who gave a break, I have seen plenty of old accounts that didn't know what bitcoin stands for or how it moves, and I have seen people who had newer accounts, and they look like they registered in 2020-21-22 but they had previous accounts so they are masters of bitcoin. So, account age doesn't really show anything.

Bitcoin will always be volatile and will stay that way even at the face of inflation, but what we are mistaking right now is that FED is trying to stop that inflation, and taking the money back, and giving high interest rates, which means that the inflation will drop, and hence why the drop in crypto, whereas when every nation printed money, the price of bitcoin reached ATH.

It's still doing better than most long term investments though. A change in time frame while looking at your charts will be able to easily fix this worry of yours. Although, it only applies for long term investors and not the weak-handed people or to most of the leverage lovers specially those doing high levs. Not that I'm generalising or assuring anything but yes, this is the case most of the time.

Now, although mass adoption is happening faster than ever,  the economic crap is messing thing outside of crypto a lot. Which means not a lot of people are eager to risk investing on crypto other than those that really understand this industry or the people that are really pro-crypto. While people are looking for better investments, people are also hesitant. Unless the whales themselves initiate a huge buy pressure, the smaller people won't have that much confidence to invest. At least that's how I currently see things in this industry.

There are two types of inflation:
1.Demand inflation-when money printing machine goes brrr... and there are too many paper money circulating in the economy.
2.Cost inflation-when the prices of important commodities increase due to non-economical factors, like western sanctions over Russia, the war in Ukraine, the supply chains getting disrupted by the pandemic, the microchip deficit, etc...
We are witnessing a combination of the two types of inflation right now. The investors are selling risky assets and buying safe heaven assets like gold and real estate. Bitcoin(and crypto coins in general) simply isn't viewed as a safe heaven asset. In times of crisis and uncertainty,the investors are sticking to what they are familiar with.

So I like to answer with a question, is it automatic that crypto will rise when inflation increases?

I think the main reason why bitcoin is rising is that people are investing, so how can people invest their money if they have financial difficulty due to inflation, maybe the whales can invest or people who own big companies just to keep their money safe from inflation. However, if we look at the overall impact, it's still the majority of the investors are moving the price of bitcoin and they are not as rich as company owners or Elon Musk for example.

In my opinion, one of the factors that inflation occurs is that all needs go up but the financial system does not support it at all as now the crypto market everywhere has started to decline, it is not worth it. inflation will continue to increase if the world market continues to experience a crisis so that the bear market will also be bearish.

That sucks real bad because it ties Bitcoin to the existing financial system (something that it was meant to avoid in the first place). How can Bitcoin become an alternative to Fiat if its price moves in relation to the stock market? That's what happens when big players (wall street, institutional investors) are in play. In the early years of Bitcoin, things were a lot different than what they are right now. People used to believe in BTC as a currency, not as an investment or speculative instrument. But greed took over, so BTC's price will be subject to heavy manipulation by whales and the likes.

Let's see what'll happen within the next 2-3 years as the world's economic situation continues to deteriorate. The more countries adopt Bitcoin as legal tender, the higher the demand for the cryptocurrency will be. Hopefully, BTC will become much more valuable in the future with every block reward halving. Who knows if we become the next Bitcoin millionaires? Just my opinion :)

Why should they be more expensive? Is the crypt somehow connected with the world of real money, economy, trade? Why, for example, does the photo in your phone, or the view outside the window, not rise in price? :) The crypt is now still an alternative reality. Therefore, processes in the real world and in the crypto world are weakly connected with each other. Yes, at times when the crypto was expensive and there was a trend for the price to rise, it entered into an alternative "haven" for the transfer of assets, in an unstable financial situation. Now the crisis is global, and the crypt does not have the status of a "money savior", especially after a 2-fold drop in its price, and ambiguous trends

If inflation occurs, many people need cash to pay for bills, debt and other necessities of life, inflation is certainly a problem that will continue to occur, but usually this is only temporary because people will think that crypto is the hope to increase income and reduce inflation.

If Bitcoin is often viewed by many as "Gold's successor", then prices should go up the more Fiat loses its purchasing power through inflation. But somehow, nothing's happening as prices continue to sink like there's no tomorrow. I guess cryptocurrencies need more time to mature before they become a true alternative against the existing monetary system.

Regardless of market prices, one can still use crypto directly for cross-border payments. But in a world where everything moves around Fiat, paying for thing directly using crypto regardless of its price makes no sense. Slowly but surely, countries are adopting crypto/Blockchain tech for their own benefit so it should only be a matter of time before we become the next crypto millionaires. I'm in no hurry to see this happen as long as crypto works as intended. Just my opinion :)

you're somewhat right about the whole scenario, lets take a look at how fiat currency depreciate commodity items in value, we all believed that once there's inflation, the price does not go back to the initial rate for all commodity which is one of the affecting factors government refused to consider in tackling against the impact of inflation on the economy system, bitcoin is an entire different approach, when it goes volatile, the prize of commodity items does not change or increases but instead it is maintained, it's the price that moves under the demand and supply of bitcoin and people have the opportunity to make profits from such while the impact of fiat causes inflation to the economy.

The world is currently facing a serious problem, namely inflation in many countries, the USA which is the world's strongest economy is also experiencing inflation so that many subsidies are reduced, of course this is a global problem that will continue to occur so that many people sell anything including crypto to make ends meet.

There is an inverse relationship between the increase in US Fed discount rates (refinancing rates) and the price of bitcoin (expressed in USD). 

The US Federal Reserve's discount rate is the rate at which the US Federal Reserve lends new money to commercial banks.  Commercial banks (in turn) lend dollars to other organizations and individuals.  Thus, the Fed's rate hike.  leads to an increase in the value of the US dollar (and a fall in the price of Bitcoin). 

At present, a further increase in rates by the US Federal Reserve has been announced. 

Therefore, we do not observe an increase in the price of Bitcoin and other cryptocurrencies.

Majority of those that would ask such question are just those who are coming in newly into the market and are expecting to get rich quick. Someone who has been here for years and seen the price of bitcoin go from where it was back then to what it is now wouldn’t be here asking such a question.

I was here since 2014 and I saw how low the price of bitcoin was then and I always appreciate how far that it has gone, because even the today’s lowest of $20k price range is a big difference to what I saw then, and it did benefit a lot of us. It will still do in the future.

It seems this is what's preventing Bitcoin and other cryptocurrencies from reaching new All-time-highs in price. The LUNA collapse also has something to do with this. Long-term speaking, crypto should be more valuable as mainstream adoption grows like crazy. There are some governments already embracing Bitcoin as legal tender, so crypto is here to stay. With every block reward halving, Bitcoin will become scarcer than ever. Since altcoins follow Bitcoin's footsteps, any positive reaction on Bitcoin's price will mirror itself on these other coins too.

Ultimately, what matters is utility. As long as crypto is useful, nothing else matters. Just my opinion :)

Inflation doesn't only happen in many countries, but any countries that use fiat as their legal tender will faced inflation, it means the whole world always have an inflation. It doesn't make sense they sold their Bitcoin to fiat, since it just decrease the value due to inflation. The reason why they sold their Bitcoin is because the market on bear season and they're looking for more low risk investment assets.

I think that Bitcoin has been doing well during the pandemic and the beginning of the war. In May, however, it hasn't been well. I guess it's because things aren't so simple, and in difficult times people don't always have money to invest and put their trust in something that isn't state-controlled. What we're seeing now is also a short-term negative movement, it might not reflect what will happen to Bitcoin's price in the future. When the pandemic started, the effect on Bitcoin was devastating. But it recovered eventually. Perhaps, even 3 months after the 2022 invasion, the war is still in its early stage, and maybe Bitcoin will rise later.

Bitcoin has ways to relate to its environment. Whatever is happening to our immediate environment will find a way to fall back to Bitcoin. If there is pandemic, whether war or inflation, Bitcoin gets its own share of it. This is the reason fundamental analysis exists. When there is global threat of war or hunger which instigates uncertainty, people tends to withdraw from wherever they invest in order to sustain and survive the situation. While this last, the price of Bitcoin gets affected. Though this cannot be said if it's an internal crisis, because any internal crisis may simply make citizens to try push their money to Bitcoin for safety.

Yes indeed the inflation is rising and people are looking for  good ways to peg the value of their money. Lets wait for crypto to reach the dip before it goes up. People are also pegging their money in GOLD or OIL.

For people it's too risky and there are scams in this market which is right also an they prefer other inflation hedge like investing in some real estate and stock market to make some profits in future but they are ignoring the fact that it's also related to inflation and rates over the World are increasing at rapid pace.So you need to make some good investment like in Bitcoin for long term that is not going to be depreciated fast compared to fiat.

The recent crypto crash is largely attributed to the Terra/LUNA collapse. Before that, crypto was doing good even with the pandemic and the Russia-Ukraine war in play. For the market to recover, we're going to have to wait quite some time until investors' confidence is restored. Hype usually comes after each Bitcoin halving, so my guess is that crypto prices will rebound sometime during 2024. Fiat inflation rates are on the rise, so it should only be a matter of time before scarce commodities/assets like Bitcoin and Gold go all the way to the moon. Who knows if buying crypto now will lead you towards untold riches in the future? Just my thoughts ;D