Yahoo Finance, US and UK Inflation Contribute to Cryptocurrency Sell-off

[Leviathan.007]

Yahoo Finance published an article about the recent price reduction in the cryptocurrency market:
https://consent.yahoo.com/v2/collectConsent?sessionId=3_cc-session_9db03e43-3e8d-46f4-8142-d27ffd515a25

The editorial states that this situation is related to the increase in inflation in the United States and Britain. According to the publication, these factors play a significant role in the price fluctuations of cryptocurrencies, especially bitcoin, which leads to the sale of cryptocurrencies.
Recall that, on Wednesday morning, the market as a whole fell amid reports of rising inflation in the United States and Britain. These sentiments reinforced speculation that central banks would raise interest rates soon.
Thus, the price of the first cryptocurrency fell 3.8 percent to $ 31,894. As a result, Bitcoin lost its $ 41,330 one-month high in June. The historic $ 63,000 ceiling reached in April this year is not worth talking about at all.
Other cryptocurrencies include a 6.7 percent drop in Ethereum ($ 1,883) and a 6.6 percent decline in Dogecoin ($ 0.19).

Why is inflation rising?
Inflation is generally rising due to easing restrictions. In the United Kingdom, for example, it rose to 2.5 percent in June. This was the highest level since August 2018, which invalidated the forecasts of economists.
US inflation hit a 13-year high in June as second-hand car prices rose, and prices rose 5.4 percent from a year earlier.


Global factors
However, in reality, these are not the only inflation reports that have contributed to this market downturn. During this month, news of cryptocurrency surveillance surfaced around the world.
As a result, there was anxiety in the market that greatly affected the price of cryptocurrencies. All of these factors indicate that cryptocurrencies are generally under great pressure from many countries and central banks.


Source: https://u.today/us-and-uk-inflation-contribute-to-cryptocurrency-sell-off-yahoo-finance

[oHnK]

Not only crypto market that has been affected by tappering off policy The Fed, but also economic condition of the others countries such as my country. Central Bank of my country has prepared the policy for facing easing restriction in the US. If we talked about crypto market, as long as I know the movement price sometimes depend on the bigger market which has the same characteristic especially in risk term. Indeed, I dont follow the global stock market daily news but in my country stock market news has been really crowded just because of The Fed policy. Thats natural if crypto market has been affected this news too, The investor always has one purpose which is "gain". In the pandemic era, the risky market isn't sexy anymore with additional the bad issue from the China Government. When The Fed apply this policy, will be sexier if we save our money to the deposito than crypto which can down until 5% per day.

[BrewMaster]

actually inflation is one of the reasons why people are buying the only deflationary currency in the world that is bitcoin. and we have not been having any sell-offs of bitcoin lately, only accumulation between $32k and $35k.

the altcoins are also pumping these days since bitcoin price is stable. of course they got dumped so hard when bitcoin pr ice dropped and they also have their natural ever dumping state but during times like this they get pumped.

not to mention that it is absurd to suggest that 5% bitcoin drop is related to anything at all because that is the regular bitcoin market behavior on day to day basis. next week it will go 5% up and the week after that it will come down 5% (same $32k and $35k again and again). until in near future it will shoot to $70k.

[The Sceptical Chymist]

a 6.6 percent decline in Dogecoin ($ 0.19).

Amazing that dogecoin actually makes the financial news.  I can see why it would be news on a site like cointelegraph, but it's crazy that a 6.6% drop in its price would catch Yahoo Finance's attention.  The real news was when doge actually got up past $0.01 or so.

US inflation hit a 13-year high in June as second-hand car prices rose, and prices rose 5.4 percent from a year earlier.

Ugh, that's discouraging--and I've heard about the prices of used cars rising, though I'm not sure why that is exactly.  But that doesn't concern me as much as the prices of things like food, gas, and other day-to-day things going up, which they most definitely are. 

This could be due to rampant money printing, low interest rates, stimulus checks, unemployment benefits, but my guess is that it's a combination of all of those factors.  And unless our governments stop creating new money as if it were toilet paper, inflation is only going to get worse.  Do they have any plan to stop?  Who knows!  If they do, they sure don't feel like letting the public in on the secret.

During this month, news of cryptocurrency surveillance surfaced around the world.

Surveillance?  I don't think I've read anything about that.  What exactly is being surveilled? 

[Leviathan.007]

Surveillance?  I don't think I've read anything about that.  What exactly is being surveilled?  

The regulatory measures.
Monitoring of any (in this case financial) activity.
Prevention and investigation of abusive, manipulative, or illegal trading practices in the securities markets.

[Poker Player]

actually inflation is one of the reasons why people are buying the only deflationary currency in the world that is bitcoin. and we have not been having any sell-offs of bitcoin lately, only accumulation between $32k and $35k.

That's what I was thinking. I don't see much logic to the argument that the Bitcoin price goes down because inflation goes up. Unless at the onset of inflation it causes a short term drop but in the long term people take refuge in Bitcoin. Something similar to what happened in 2020 from March onwards, that in the face of the crisis there was a massive sell-off in search of liquidity, but then the price went up.

not to mention that it is absurd to suggest that 5% bitcoin drop is related to anything at all because that is the regular bitcoin market behavior on day to day basis. next week it will go 5% up and the week after that it will come down 5% (same $32k and $35k again and again). until in near future it will shoot to $70k.

Lol.

[BrewMaster]

I don't see much logic to the argument that the Bitcoin price goes down because inflation goes up. Unless at the onset of inflation it causes a short term drop but in the long term people take refuge in Bitcoin.

inflation is not something that happens overnight or in short term. it is happening every day. and it is the mother of all price rises. your rent, utility bill, groceries, ... are all rising and bitcoin is not an exception. it too will rise as inflation increases.

Something similar to what happened in 2020 from March onwards, that in the face of the crisis there was a massive sell-off in search of liquidity, but then the price went up.

the panic sell was not in face of the crisis, it is in fear that BECAUSE stock market has crashed then bitcoin must crash too! which makes no sense because bitcoin over the past 13 years has never followed any market whatsoever and in 2020 it had no reason to begin to follow them either.
in fact after the initial panic sell, the bitcoin price started shooting up while stocks and other markets continued dumping which is another proof that bitcoin has never followed any market and never dumped in face of some crisis like the pandemic.

[stompix]

actually inflation is one of the reasons why people are buying the only deflationary currency in the world that is bitcoin. and we have not been having any sell-offs of bitcoin lately, only accumulation between $32k and $35k.

Common, you can't have accumulation without people selling to those that buy.
The simple fact that the price isn't going up even with this small volume means only one thing, despite its inflationary trajectory fiat is preferred because people need it. People start pulling out investments because they either need to buy stuff or they want to buy something thinking prices would jump in the short future.
For example, the price for housing here is going nuts, you simply can't find anything below ~2000euros/mp2 and I'm not talking about the city center, prices are up by at least 15% year to year and nothing went down during the pandemic.

I know you're 101%bullish and you like to think of every drop as "accumulating" , the last of the weak hand tribe finally caught and hanged but it's simply not like this.  Look at all the great news we've had, all the progress and there is simply no up momentum

the panic sell was not in face of the crisis, it is in fear that BECAUSE stock market has crashed then bitcoin must crash too! which makes no sense because bitcoin over the past 13 years has never followed any market whatsoever and in 2020 it had no reason to begin to follow them either.

Then why did it crash in April last year just like the stock market?

The stock market crash of 2020 began on Monday, March 9, with history's largest point plunge for the Dow Jones Industrial Average (DJIA) up to that date. It was followed by two more record-setting point drops on March 12 and March 16. The stock market crash included the three worst point drops in U.S. history.

Bitcoin:

2020-03-13   $5,142.99   
2020-03-12   $7,935.52

[tyz]

a 6.6 percent decline in Dogecoin ($ 0.19).

Amazing that dogecoin actually makes the financial news.  I can see why it would be news on a site like cointelegraph, but it's crazy that a 6.6% drop in its price would catch Yahoo Finance's attention.  The real news was when doge actually got up past $0.01 or so.

Why not? Dogecoin is one of the top 10 coins according to the market cap and has received a lot of attention due to the Elon Musk affair, which has driven many inexperienced people into Dogecoin. Of course, they are extremely interested in the future of the coin and crave news like this, which in turn drives Yahoo's ad sales. You could also say it's a kind of clickbait of Yahoo.