Bitcoin declines due to news of the inflation rate

[Gost ms]

The Bitcoin price is never stable rather it keep moving up and down. I don't know why some calling this small dip as decrease in price or bearish season. It's normal for Bitcoin to take such dips on its way of moving up. If Bitcoin move up in price we will start hearing news that Bitcoin has started it's journey towards 150k. Bitcoin price is unpredictable thats why we need to be prepared for every price of Bitcoin both mentally and financially.

Yes, you are right, Bitcoin is very volatile, almost always the price of Bitcoin increases and decreases. I think this is a very normal thing. Because if we look at the past, then maybe we can understand. Because many times in the past, the price of Bitcoin has decreased a lot. But during that time, Bitcoin has created new records and proved everyone wrong. To me, the volatility of Bitcoin seems to be a natural thing. But if Bitcoin ever becomes stable, then this thing will become very abnormal for me.

We should never look at the price of Bitcoin, we should always continue to buy and hold it for the long term.

[Swordsoffreedom]

All what you posted to be the reason for the sharp drop innthe price of bitcoin and other major cryptocurrency assets may be right as bitcoin and the cryptocurrency ecosystem is part of the larger global economy and we cant deny the fact that whatever effects other stock market will definitely affect bitcoin and the entire cryptocurrency market.

Aside that also we should know that bitcoin have always been and unpredictable volatile assets and for that we shouldn't get is twisted when we see this kind of a dip drops, since we are already familiar with that occurring every now and then.

The stock market is a speculative market and if bitcoin moves along with stocks, it means bitcoin is also a speculative asset, not a safe haven. I think that's what the OP is asking, bitcoin is supposed to be digital gold and bitcoin price will rise when there is news of inflation and economic instability. But things are going in the opposite direction, and while that is normal, it shows that bitcoin is not the safe haven that many people think.

Yes, bitcoin is a fairly volatile asset, and a highly volatile asset cannot be a safe haven.

[Free Market Capitalist]

The stock market is a speculative market and if bitcoin moves along with stocks, it means bitcoin is also a speculative asset, not a safe haven. I think that's what the OP is asking, bitcoin is supposed to be digital gold and bitcoin price will rise when there is news of inflation and economic instability. But things are going in the opposite direction, and while that is normal, it shows that bitcoin is not the safe haven that many people think.

Yes, bitcoin is a fairly volatile asset, and a highly volatile asset cannot be a safe haven.

That depends greatly on the time horizon you consider. If you think 10 months ahead, it will not be a safe haven, because it may be 70% cheaper than it is now, but if you think 10 years ahead, then of course it will be.

On the other hand, volatility normally decreases over time, meaning there will be fewer fluctuations and it will resemble traditional safe havens more closely, but this will also mean lower returns.

[mindrust]

Does it really make a difference what we call it? If you think this was a manipulated pullback, one could say the same thing for the recent price rally to ATH. Some people make money when the prices crash too. These all work both ways. My main point is that this mini crash won’t make a difference if you hold your coins for like 5 years. You won’t even remember what happened today because you’ll be filthy rich. US treasury secretary, inflation numbers… even Russia-Ukraine war… they are all noise trying to distract people out of their bitcons.

These movements are only important if you are playing with leverage. Hopefully nobody is dumb enough to do that. Playing dice is a better idea.

5 years? I barely remember that a year ago we were breaking the 2021 ATH. Now everyone seems strangely used to $100k and I bet there would be total panic if we went to $90k next week.

It's even better than that! Last year the worst dump was in August and the monthly lows went as deep as $49k. A year ago we were at $49k and today people think Bitcoin is looking weak when it goes from 123 to 113k...

That said, the current price is 100% influenced by Wall Street. You can even see it by looking at the time when the price goes down. There's more buyers during the night hours in the US and more sellers when it's night in Europe and Asia and it strangely coincides withe the inflation data in the US and the Nasdaq crashing.

Wall street or no wall street, honey badger doesn’t care. It will do what it has been doing for the last 2 decades without stopping. Hunting for profits. Is it really that important that wall street is the market maker now? Before wall street there were big independent bitcoin whales who were doing the same thing. We had like 30% to 60% crashes in a very short period. Do you think that era was better than this current one? Wall street brought some stability imo. Even if we go below $100k now, the volatility still will be less than what we used to have. Just keep DCA’ing and don’t get distracted by the noise.

[betswift]

Wall street or no wall street, honey badger doesn’t care. It will do what it has been doing for the last 2 decades without stopping. Hunting for profits. Is it really that important that wall street is the market maker now? Before wall street there were big independent bitcoin whales who were doing the same thing. We had like 30% to 60% crashes in a very short period. Do you think that era was better than this current one? Wall street brought some stability imo. Even if we go below $100k now, the volatility still will be less than what we used to have. Just keep DCA’ing and don’t get distracted by the noise.

Definitely agree with the last statement.

Bigger entities bring their regulatory fingers, as well as stability, to the table.

And they can and will do it, because BTC if for everyone..

[Danica22]

If we're being fair, gold also sometime experience the same thing, gold isn't always going up but occasionally going down too. But people still call it anti inflationary asset regardless.

But there is a huge difference between gold and bitcoin, gold usually increases in price when inflation increases and causes instability in the economy. Gold only corrects or enters a decline phase when the economy gradually stabilizes. Meanwhile, bitcoin tends to be the opposite, it often gets dumped whenever the economy is in crisis or geopolitical turmoil. Bitcoin only grows when there is positive news or the economy is stable.

Anti inflationary asset are assets that increase in value over time, so not only gold or bitcoin but even blue-chip stocks can act as a hedge against inflation. It can be said that we have many assets that are capable of fighting inflation.

[john_egbert]

If we're being fair, gold also sometime experience the same thing, gold isn't always going up but occasionally going down too. But people still call it anti inflationary asset regardless.

But there is a huge difference between gold and bitcoin, gold usually increases in price when inflation increases and causes instability in the economy. Gold only corrects or enters a decline phase when the economy gradually stabilizes. Meanwhile, bitcoin tends to be the opposite, it often gets dumped whenever the economy is in crisis or geopolitical turmoil. Bitcoin only grows when there is positive news or the economy is stable.

Anti inflationary asset are assets that increase in value over time, so not only gold or bitcoin but even blue-chip stocks can act as a hedge against inflation. It can be said that we have many assets that are capable of fighting inflation.

It's a matter of what we want to do with our custody and be reliable on something other than ourselves, basically.

Bitcoin provides much more than to be just an asset or the likes of stocks or gold..

[dezoel]

Honestly these stuff are temporary and daily, it is not really something that we can agree on at the moment and we shouldn't bother with it at all. I think the best way to move forward would be just ignoring these small movements that are not for long term, and just keep focusing on how great it will be in the future.

We are in the bull run, and the rate doesn't matter to us, it can go down, up, or stay same and nothing matters to us. We should be focusing on how to get a greater profit on the long term and we can do a lot better result. I know that this isn't a big deal at the moment, but we can certainly get a better return when the time is right, so we shouldn't really worry about how to get the best return on the long run.

[fikrett]

Honestly these stuff are temporary and daily, it is not really something that we can agree on at the moment and we shouldn't bother with it at all. I think the best way to move forward would be just ignoring these small movements that are not for long term, and just keep focusing on how great it will be in the future.

We are in the bull run, and the rate doesn't matter to us, it can go down, up, or stay same and nothing matters to us. We should be focusing on how to get a greater profit on the long term and we can do a lot better result. I know that this isn't a big deal at the moment, but we can certainly get a better return when the time is right, so we shouldn't really worry about how to get the best return on the long run.

All in all - we can just chill till we hear news about new ATH, before that, we shouldn't be worried at all, imo

[DonaldCryptoTalk1]

The biggest cryptocurrencies in the world dipped sharply Thursday after the latest inflation data showed wholesale prices are rising much faster than expected. The price of Bitcoin is down 3.8% on the day ($117,900), Ethereum is down 4% ($4,535), and Ripple is down 6.1% ($3.07) according to CoinMarketCap.

Crypto prices are responding to the Producer Price Index (PPI) for July, which measures the average change in prices from U.S. manufacturers and service providers. It rose by 0.9%, according to the Bureau of Labor Statistics, the largest monthly increase since March 2022, according to the Wall Street Journal.


Why is it that bitcoin and other cryptocurrencies have declined in response to the inflation rate rising? Should the response be the other way around? Bitcoin is anti inflationary so it makes more sense to use bitcoin to protect the value of your bitcoin. So, why was the response like this? What do you think so?

Yeah, you’d think higher inflation would push people toward Bitcoin since it’s anti-inflationary, but markets don’t always move that clean. In the short term, Bitcoin still trades like a risk asset. When inflation data comes in hot, investors start worrying the Fed will hike rates or keep them high, and that usually means risk-off across stocks and crypto.

Long term though, you’re right, Bitcoin was built exactly for times like this. The short-term traders dump on headlines, but the real hedge value of Bitcoin shows up over years, not days. That’s why hodlers don’t stress these dips.

[hero_the_bossman]

The biggest cryptocurrencies in the world dipped sharply Thursday after the latest inflation data showed wholesale prices are rising much faster than expected. The price of Bitcoin is down 3.8% on the day ($117,900), Ethereum is down 4% ($4,535), and Ripple is down 6.1% ($3.07) according to CoinMarketCap.

Crypto prices are responding to the Producer Price Index (PPI) for July, which measures the average change in prices from U.S. manufacturers and service providers. It rose by 0.9%, according to the Bureau of Labor Statistics, the largest monthly increase since March 2022, according to the Wall Street Journal.


Why is it that bitcoin and other cryptocurrencies have declined in response to the inflation rate rising? Should the response be the other way around? Bitcoin is anti inflationary so it makes more sense to use bitcoin to protect the value of your bitcoin. So, why was the response like this? What do you think so?

Yeah, you’d think higher inflation would push people toward Bitcoin since it’s anti-inflationary, but markets don’t always move that clean. In the short term, Bitcoin still trades like a risk asset. When inflation data comes in hot, investors start worrying the Fed will hike rates or keep them high, and that usually means risk-off across stocks and crypto.

Long term though, you’re right, Bitcoin was built exactly for times like this. The short-term traders dump on headlines, but the real hedge value of Bitcoin shows up over years, not days. That’s why hodlers don’t stress these dips.

HODLERs know better than these bigger whales and those who think BTC is as risky as buying any other crypto: because we know for a fact that BTC is the best and will surpass anything in its way toward the adoption, one way or another.

[Swordsoffreedom]

The stock market is a speculative market and if bitcoin moves along with stocks, it means bitcoin is also a speculative asset, not a safe haven. I think that's what the OP is asking, bitcoin is supposed to be digital gold and bitcoin price will rise when there is news of inflation and economic instability. But things are going in the opposite direction, and while that is normal, it shows that bitcoin is not the safe haven that many people think.

Yes, bitcoin is a fairly volatile asset, and a highly volatile asset cannot be a safe haven.

That depends greatly on the time horizon you consider. If you think 10 months ahead, it will not be a safe haven, because it may be 70% cheaper than it is now, but if you think 10 years ahead, then of course it will be.

On the other hand, volatility normally decreases over time, meaning there will be fewer fluctuations and it will resemble traditional safe havens more closely, but this will also mean lower returns.

Despite many similarities, safe havens are conceptually different from stores of value, hedges against inflation. A safe haven asset is not only one that appreciates in value over time, but also one that is guaranteed not to be dumped during times of economic and geopolitical uncertainty. So far, only oil and gold have met that criteria, while bitcoin and stocks have been dumped whenever the economy has been in turmoil. So bitcoin may be a store of value and a hedge against inflation, but it is not yet a safe haven.

But you're right, this will probably change over time. Over time, as bitcoin grows, its volatility will decrease and eventually it will become as stable as gold. Then it will become a safe haven but the price is that the return will be as low as gold.

[hero_the_bossman]

The stock market is a speculative market and if bitcoin moves along with stocks, it means bitcoin is also a speculative asset, not a safe haven. I think that's what the OP is asking, bitcoin is supposed to be digital gold and bitcoin price will rise when there is news of inflation and economic instability. But things are going in the opposite direction, and while that is normal, it shows that bitcoin is not the safe haven that many people think.

Yes, bitcoin is a fairly volatile asset, and a highly volatile asset cannot be a safe haven.

That depends greatly on the time horizon you consider. If you think 10 months ahead, it will not be a safe haven, because it may be 70% cheaper than it is now, but if you think 10 years ahead, then of course it will be.

On the other hand, volatility normally decreases over time, meaning there will be fewer fluctuations and it will resemble traditional safe havens more closely, but this will also mean lower returns.

Despite many similarities, safe havens are conceptually different from stores of value, hedges against inflation. A safe haven asset is not only one that appreciates in value over time, but also one that is guaranteed not to be dumped during times of economic and geopolitical uncertainty. So far, only oil and gold have met that criteria, while bitcoin and stocks have been dumped whenever the economy has been in turmoil. So bitcoin may be a store of value and a hedge against inflation, but it is not yet a safe haven.

But you're right, this will probably change over time. Over time, as bitcoin grows, its volatility will decrease and eventually it will become as stable as gold. Then it will become a safe haven but the price is that the return will be as low as gold.

That would be a better option if we want to see BTC as an alternative to fiat, imo, the one used for transactions truly and more than it is done now... Because if BTC fluctuates this much or even as it did in the past, it won't be able to be that alternative on a broader scale, nobody from the big guys would want such an alternative because it's not filling up the criteria..