Bitcoin Pops and Drops After Powell Introduces Average Inflation Targeting

[kolbalish]

Bitcoin whipsawed on Thursday after the Federal Reserve’s chairman signaled tolerance for high inflation, as expected.

The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk's Bitcoin Price Index.
The dollar index, which tracks the value of the greenback against majors, also faded the drop to 92.50 and now trades near 93.30.
The negative correlation between the dollar and bitcoin has strengthened over the past few weeks.
Federal Reserve Chairman Jerome Powell, while speaking at central bank's annual Jackson Hole event, said that the central bank will now be willing to allow inflation to run higher than the 2% target before raising interest rates.

Reference- https://www.coindesk.com/bitcoin-pops-and-drops-after-powell-introduces-average-inflation-targeting

[STT]

Nice, that does explain that fairly large blip and I was even watching the FED some but didnt figure it'd make BTC jump like that but thats a reasonable reaction, more of a pop then any break either way.    The way they drone on and on, some crib notes is useful.

BTC didnt break its decline over recent measures but I think on daily its still within a higher range and quite fair to positive.   Its much harder to say if it will turn any further then these daily boundaries, something like 11050 to 10500 to check support seems quite likely to occur.

[Coin_trader]

Bitcoin whipsawed on Thursday after the Federal Reserve’s chairman signaled tolerance for high inflation, as expected.

The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk's Bitcoin Price Index.
The dollar index, which tracks the value of the greenback against majors, also faded the drop to 92.50 and now trades near 93.30.
The negative correlation between the dollar and bitcoin has strengthened over the past few weeks.
Federal Reserve Chairman Jerome Powell, while speaking at central bank's annual Jackson Hole event, said that the central bank will now be willing to allow inflation to run higher than the 2% target before raising interest rates.

Reference- https://www.coindesk.com/bitcoin-pops-and-drops-after-powell-introduces-average-inflation-targeting

This 1% change within short span is normal on BTC, This is just a coincidence since BTC is experiencing test to the support and resistance. Maybe you should find the news that incorporated to other 1% price change of BTC within short span though. I'm not disregarding the effect of TA but I'm not buying this kind of news because the TA show this signal even though this News is not available. A massive pump like atleast 10% gain/lose out of nowhere is a believable effect of FA.

[pooya87]

The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk's Bitcoin Price Index.

changes that are this tiny (ie. around 1%) are not considered "jumps" or "drops" in bitcoin market. throughout all it existence, bitcoin has bee volatile and when it has anything below 5% up or down it can be considered dead stable. when the changes go beyond that but usually 10% we can start talking about jumps and drops.
besides a real meaningful jump would be above the resistance at $12k not the fluctuations below it inside the $11k range.

The negative correlation between the dollar and bitcoin has strengthened over the past few weeks.
Federal Reserve Chairman Jerome Powell, while speaking at central bank's annual Jackson Hole event, said that the central bank will now be willing to allow inflation to run higher than the 2% target before raising interest rates.[/left]

there has always been a strong connection but i don't think what we are seeing in the market these days has anything to do with that. basically i believe that the inflation effects will be noticed in the long run unless there is a big and sudden crash in USD value.

[tbterryboy]

This "tolerance for high inflation" will not work, it is a temporary solution to a permanent problem and that is basically all the financial world do, because in the end they do fix the situation of right now and the problem will not happen for a long time (hopefully) again and meanwhile they will recover as much as they can. Look at 2008 problem and 2020 problem for example, totally different reasons but do you really think Cuba had it as bad as USA?

You might think Cuba is a poor and bad country but at least it is the same on every single year, whereas USA had 2008 and they found a temporary solution and for 5-7 years they focus on getting back on track and past 4 years they have gone up really well above and beyond, and now they go back down again, which means they will work again.

The only hope they have is that this doesn't happen every 2-3 years, in that case they can't fix it.

[cryptomaniac_xxx]

I don't think the market reacted when Powell introduce average inflation targeting. It's just a minor jump or drop, so it doesn't make sense that we can conclude that everything is base on this announcement. On the contrary look at the current state of the market, almost everyone is green again. So I guess, this is normal price movement not attributed to any news. It's just that crypto related media is looking for any news that will sensationalized everything to get click ad revenues.

[bitgolden]

What do you guys see in the future of fiat? Right now we are not done with the pandemic and we are not done with what it will effect in the future neither, it is just not doing that differently and I just do not feel that it would change too much neither. Think about it fiat "looks" better right now but in reality we all know that nothing has changed, governments did something to prevent having this horrible crisis since it would lead to everyone not having any money and everyone walking around with zero dollars, but in reality it was just temporary because the problem is still there.

Both the pandemic and things it caused still going on, so I do not think that we are too much ready for anything at all. Hopefully it won't get too bad but I am not optimistic as the numbers are showing.

[Mahanton]

Bitcoin whipsawed on Thursday after the Federal Reserve’s chairman signaled tolerance for high inflation, as expected.

The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk's Bitcoin Price Index.
The dollar index, which tracks the value of the greenback against majors, also faded the drop to 92.50 and now trades near 93.30.
The negative correlation between the dollar and bitcoin has strengthened over the past few weeks.
Federal Reserve Chairman Jerome Powell, while speaking at central bank's annual Jackson Hole event, said that the central bank will now be willing to allow inflation to run higher than the 2% target before raising interest rates.

Reference- https://www.coindesk.com/bitcoin-pops-and-drops-after-powell-introduces-average-inflation-targeting

1% movement and now you do correlate Bitcoinsp rice into that Average Inflation? If you've been here for a while now then this 1% that youve been talking is just a typical thing to happen.
Bitcoin can move without any of these sentiments and its always been like this where it can even swing up its price for 10% or more without even knowing the true reason
behind of such movement.This is why im not really that much interested when it comes to these matters on where you do correlate Bitcoin or crypto market on traditional
news or sentiments but somewhat there are instances that might really be connected but it doesnt matter that much.

[Baofeng]

What do you guys see in the future of fiat? Right now we are not done with the pandemic and we are not done with what it will effect in the future neither, it is just not doing that differently and I just do not feel that it would change too much neither. Think about it fiat "looks" better right now but in reality we all know that nothing has changed, governments did something to prevent having this horrible crisis since it would lead to everyone not having any money and everyone walking around with zero dollars, but in reality it was just temporary because the problem is still there.

Fiat will still be there in the future. Although governments are printing money to get out of recessions or this pandemic, it won't be the solution.

Regarding the bitcoin pops and drops, Lol, Powell address has no effect on crypto, and this kind of statements strengthen bitcoin as the new gold, as retail investors is flocking into bitcoin.

[buwaytress]

Nice, that does explain that fairly large blip and I was even watching the FED some but didnt figure it'd make BTC jump like that but thats a reasonable reaction, more of a pop then any break either way.    The way they drone on and on, some crib notes is useful.

BTC didnt break its decline over recent measures but I think on daily its still within a higher range and quite fair to positive.   Its much harder to say if it will turn any further then these daily boundaries, something like 11050 to 10500 to check support seems quite likely to occur.

Notice how there was practically no pause in the droning when Powell basically said, "Inflation? Meh, come at us bro!"?

And yeah, logic says that's what led to the small recovery for BTC too but the way the market's been, this could very well have been normal range. I mean, that Fed speech wasn't exactly surprising anyone by now. We know unlimited printing is on the cards for the rest of the year.

[batang_bitcoin]

With or without those, bitcoin has been like this.

Op, btc has moved more than that and I don't think such information could be the reason for a little addition in price. We remember that price has been falling for two weeks. So that I think was a renounce in price.

You've said it!
Those introductions means not that much to bitcoin. It can move even more than that even without the introduction from Powell. The expected price moving is due to that fact that it came from $11,200.

[davis196]

Bitcoin whipsawed on Thursday after the Federal Reserve’s chairman signaled tolerance for high inflation, as expected.

The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk's Bitcoin Price Index.
The dollar index, which tracks the value of the greenback against majors, also faded the drop to 92.50 and now trades near 93.30.
The negative correlation between the dollar and bitcoin has strengthened over the past few weeks.
Federal Reserve Chairman Jerome Powell, while speaking at central bank's annual Jackson Hole event, said that the central bank will now be willing to allow inflation to run higher than the 2% target before raising interest rates.

Reference- https://www.coindesk.com/bitcoin-pops-and-drops-after-powell-introduces-average-inflation-targeting

Such a small Bitcoin price fall can't be explained only with the statement made by Jerome Powell.This might be the usual price volatility on the crypto market and Bitcoin might never reacted to the FED chairman statement.
Now the Bitcoin price is around 11,570 USD.Do you have any weird explanation why the price recovered from 11,400 to 11,570 USD?
This looks to me like another pointless clickbait article.

[bitgolden]

Right now it is over $11.5k once again, so just a news can bring it back but it could just go back up once again without a trouble? That must be something so small and unimportant that people should not be really caring about it in the first place. Look I get it, regular fiat financial systems obviously do have some impact in the bitcoin world, we are all still considering "how much a bitcoin is" by looking at the fiat value of a bitcoin, so I understand that there is still some sort of situation there, however do not really confuse having an impact on it and manipulating it.

Fiat world could have an impact and could change stuff in crypto time to time when big stuff happens, but they can't just manipulate the crypto market however they wish, that is not possible.

[YuginKadoya]

I see pretty normal movement with the price of Bitcoin however if as you state that the price was changed and it is because of the Fed reserve announcement of the inflation was on the nick of time with the change, a coincidence can sure happen at least it is the way volatility works and it is very common to cryptocurrency to change so sudden even if it is a small change, Pretty sure many don't really care about the small change that happened because they are waiting for the big pump that may happen or a correction as well.

[Fundamentals Of]

How certain are we that the slight increase in Bitcoin's price is due to the Federal Reserve chairman's statement that they are now open for higher inflation target?

The increase was not even a jump. It was just a normal movement, with more than $100 of increase. I don't think the statement has a heavy effect in Bitcoin. If the high inflation will finally take place, perhaps that's the time when the price and adoption of Bitcoin will be significantly affected by it.

[btc_angela]

How certain are we that the slight increase in Bitcoin's price is due to the Federal Reserve chairman's statement that they are now open for higher inflation target?

We can conclude that it was not due to ederal Reserve chairman's statement.

The increase was not even a jump. It was just a normal movement, with more than $100 of increase. I don't think the statement has a heavy effect in Bitcoin. If the high inflation will finally take place, perhaps that's the time when the price and adoption of Bitcoin will be significantly affected by it.

And now we have seen another significant jump to $12k, but it didn't sustain going the price to go down at $11,800. So it's really hard to say what is "normal" in bitcoin's price. And there could be argument that it still boils down to supply-and-demand.