BCT's drop and CPI Report 😧

[btc_angela]

I do find it funny that CPI seems to have more effect than other hardcore markers. Take the rate hikes, for instance. They've not only been higher than expected in the last couple of announcements (and the coming one should at least be 0.75, which is higher than anything they'd predicted months ago)... but these haven't had the same effect as CPI.

Makes me wonder what kind of Bitcoin speculators are heavy in the market now.

But enough with this Bitcoin hedge against fiat inflation, why aren't we over it? heh

Probably it's because it has been magnified before and so up to know, every time there is a CPI news, everyone is glued to it and see what will it be this time. It's just unfortunate that the last one really put a dent more on crypto as compare to let's say stocks which has like 2% down, while crypto suffers 10% and up to know we are having a hard time trying to get to our previous round number support, which is $20k. Maybe its because we are in a bear market and so the argument that Bitcoin is hedge against inflation is a big question right now.

[1714964690]

1714964690

[bbc.reporter]

What we have witnessed to be very funny is those maximalists who try to convince everyone that bitcoin is a hedge for inflation. However, it was certainly made clear to everyone that this time of high inflation, bitcoin performed unsuccessfully and only during the time of low inflation where it performed like an inflation hedge hehe.

Well if bitcoin price remains close to $20k while other fiat currencies continue dumping in value that means it is a hedge against inflation because it doesn't need to soar to be a hedge. But it's too soon to say.

Additionally we are not just in an inflation alone these days. We have had inflation alone over the past couple of years and during that time bitcoin went from $3k to $70k.

Currently we are in a recession with inflation which is entirely different. Meaning people can not earn enough money anymore (hence the recession) while price of everything keeps going up (hence the inflation).
That's not to mention the two ongoing wars on food and energy.

However, what if the dollar becomes stronger in demand while bitcoin dumps below $20k? DXY is an index of the dollar versus a basket of currencies. It has been going higher since more than 1 year.

Inflation has always been present, however, it is low inflation. Before 2022 inflation was lower than 3% in America and the effects of this was not a problem.

It is weak during recession and inflation, what is reality showing us? Also, if we do not know the amount of leverage that pumped bitcoin from $3k to $70k, we do not know what we are investing in.

[buwaytress]

I do find it funny that CPI seems to have more effect than other hardcore markers.

Probably it's because it has been magnified before and so up to know, every time there is a CPI news, everyone is glued to it and see what will it be this time. It's just unfortunate that the last one really put a dent more on crypto as compare to let's say stocks which has like 2% down, while crypto suffers 10% and up to know we are having a hard time trying to get to our previous round number support, which is $20k. Maybe its because we are in a bear market and so the argument that Bitcoin is hedge against inflation is a big question right now.

But that's the thing, though. I don't think CPI is as magnified as the rate hikes (or never thought it was anyway) -- certainly the only time I see mainstream covering it is close to and right after the numbers -- whereas the rate hikes get a lot of chatter.

So, leads me to think Crypto Twitter is the one fixated on CPI, and as you said, Bitcoin dropping more than stocks. Seems to suggest crypto speculators are still a lot more... abnormal than I'd thought.

[redsun114]

And when we thought that the bleeding is already done, the price goes down again below $20k, an indication that indeed there is a huge sell-off still going on and people are now panicking. But let's wait, we haven't seen this negative news really having a huge impact for months. Maybe this week this will be felt, but after that, it's business as usual and we could be back above $20k again.

Yeah it happens frequently this is why I lowered my expectations for now. The cause of the recent dip might be those huge sells off that you are saying but I wonder who are doing that? Was it the whales? I don't see the reason for a common individual to panic right now because I never heard of a negative news or a fud lately and people must be used to this kind of scenario, you know where btc increase from $22k and $23k and then goes down again to $20k or $19k.

Which are the next events that you think will negatively impact BTC prices? I was thinking about the next halving, but I would also like to hear all of you guys’ opinions.

Halving is said to bring positive effect in the price of btc and all of the cryptos but halving was still too far and before we get there, there might be other negative events that we will be facing. Better prepare for it.

[btc_angela]

I do find it funny that CPI seems to have more effect than other hardcore markers.

Probably it's because it has been magnified before and so up to know, every time there is a CPI news, everyone is glued to it and see what will it be this time. It's just unfortunate that the last one really put a dent more on crypto as compare to let's say stocks which has like 2% down, while crypto suffers 10% and up to know we are having a hard time trying to get to our previous round number support, which is $20k. Maybe its because we are in a bear market and so the argument that Bitcoin is hedge against inflation is a big question right now.

But that's the thing, though. I don't think CPI is as magnified as the rate hikes (or never thought it was anyway) -- certainly the only time I see mainstream covering it is close to and right after the numbers -- whereas the rate hikes get a lot of chatter.

So, leads me to think Crypto Twitter is the one fixated on CPI, and as you said, Bitcoin dropping more than stocks. Seems to suggest crypto speculators are still a lot more... abnormal than I'd thought.

Right, everything that they can find and relate it to crypto they will do it. And the drop just shows how sensitive this market is, however, we all know that there is no central authority so everyone can play with their own rules, whether manipulating it for their own benefits, but it gonna be hard to do that without colluding. Speculators or whatever we call them, will be a huge part of the market though. So let's wait for the next CPI and see if it will have the same impact or not.

[beerlover]

everything that they can find and relate it to crypto they will do it. And the drop just shows how sensitive this market is, however, we all know that there is no central authority so everyone can play with their own rules, whether manipulating it for their own benefits, but it gonna be hard to do that without colluding. Speculators or whatever we call them, will be a huge part of the market though. So let's wait for the next CPI and see if it will have the same impact or not.

That's right, since it's decentralized it's all of us that decide on where the market will go. It's going to be something tough but at the same time it's not going to be a solution to us if we keep selling it, we should be buying as much as possible and that's how we are going to make that money back. Doesn't mean it's going to be easy, but it will certainly not be something incredibly difficult to handle neither.

We just need to stand our ground no matter what kind of news happens, and if we can arrange that we are going to end up with a good price, all we need is not to sell when there is a bad news, which has been what we have done so far.