Can Bitcoin (BTC) Crash To $13K After The Fed Rate Hike?

[DanWalker]

Bitcoin was created to be deflationary, so any increase in the inflation rate of fiat should naturally make people adopt Bitcoin more. If it's not happening according to the design of bitcoin we might as well believe the Feds news didn't have an effect on bitcoin whatsoever.

With what is going on, we can see bitcoin is still not out of the game. Bitcoin is one of the asset classes that is rated as a risk asset so I believe it will be greatly affected by the Fed, every time interest rates increase, assets like bitcoin and stocks move in the direction of the trending decrease rather than increase.
Bitcoin was created with a maximum supply as a hedge against inflation but that is not really possible right now because of the volatility and risk it brings.

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[justdimin]

Bitcoin was created to be deflationary, so any increase in the inflation rate of fiat should naturally make people adopt Bitcoin more. If it's not happening according to the design of bitcoin we might as well believe the Feds news didn't have an effect on bitcoin whatsoever.

With what is going on, we can see bitcoin is still not out of the game. Bitcoin is one of the asset classes that is rated as a risk asset so I believe it will be greatly affected by the Fed, every time interest rates increase, assets like bitcoin and stocks move in the direction of the trending decrease rather than increase.
Bitcoin was created with a maximum supply as a hedge against inflation but that is not really possible right now because of the volatility and risk it brings.

I know that FED deal will hurt us more than most other things, and we are volatile so that means in a world where stocks go down 10-20% because of something (like fed interest rate) that will result with us going down maybe 50% and that is what we are living right now.

But, we need to remember that while the drop could be harsher, the increase will be steeper as well. This will result with us going 2x instead of 10-20% higher as well when things reverse. This is why we should be focusing a bit more towards making more money, and buying as much as we can from these prices so that we could profit even more when the time comes and that will be awesome.

[bbc.reporter]

I see that you are only partly right. To think that a rate hike should lead people to automatically buy Bitcoin as Iadegbola34 says is a mistake, I agree, but Bitcoin has proven to be the best inflation hedge since it was created. Even with the recent downturn, Bitcoin has hedged better against inflation than gold or the stock market, for example, as those have also gone down. Another thing is that it is volatile, since the definition of inflation hedge makes no mention of volatility:

What Is an Inflation Hedge?

An inflation hedge is an investment that is considered to protect the decreased purchasing power of a currency that results from the loss of its value due to rising prices either macro-economically or due to inflation. It typically involves investing in an asset that is expected to maintain or increase its value over a specified period of time.

The point is that in the medium and long term, Bitcoin has so far proven to be the best inflation hedge since its inception.

I'm quite unsure of that. Yes, maybe you can make that conclusion because on the long-term bitcoin has over-performed. But stocks like Amazon and Apple over-performed the market as well, does it make both assets an inflation hedge as well? I don't think so.

It is certainly beginning to appear like inflation hedge is only being used as a storyline or a marketing tool by many bitcoiners to market bitcoin. I am sorry if this is insulting to much of you, however, it is not my purpose.

In any case, @adaseb, more bad news about another victim of Su Zhu and 3 Arrows Capital. This time it is Genesis Trading, owned by DCG which is also owned by Barry Silbert.



Cryptocurrency market maker and lending firm Genesis Trading is facing potential losses into the “hundreds of millions,” according to three people familiar with the matter.
The losses at Genesis relate in part to exposure to over-leveraged hedge fund Three Arrows Capital and Hong Kong-based crypto lender Babel Finance and are on the order of “a few hundred million dollars,” one of the people said.

The losses come as the collapse of Three Arrows Capital sends shockwaves across the crypto lending industry, with numerous firms facing substantial losses from their exposure to the fund.

Source https://www.coindesk.com/business/2022/06/29/genesis-faces-hundreds-of-millions-in-losses-as-3ac-exposure-swamps-crypto-lenders-sources/

[Lubang Bawah]

After the price of bitcoin from $ 30k to $ 20k in a week then anything can happen, in my opinion the opportunity to drop to $ 13k is very large, especially now that many haters continue to spread FUDS so that it makes many investors panic, if the price of $ 13k occurs then I suggest to buy.

[leea-1334]

It is certainly beginning to appear like inflation hedge is only being used as a storyline or a marketing tool by many bitcoiners to market bitcoin. I am sorry if this is insulting to much of you, however, it is not my purpose.

In any case, @adaseb, more bad news about another victim of Su Zhu and 3 Arrows Capital. This time it is Genesis Trading, owned by DCG which is also owned by Barry Silbert.

Bitcoin is inflation resistant this I always agreed,,, but yes, I think a lot of people in Bitcoin are misusing terms here and there. Then again,,, a lot of terms that are suited for stocks and bets have been applied to Bitcoin and I think we can say that these terms evolve. I see a lot of terms like Dead Cat Bounce that actually do not even apply to Bitcoin (but still people use it).

You hedge a bet by placing it on something that is opposite to what the bet is supposed to do, so maybe some people bought Bitcoin as an inflation hedge and it totally worked (you can use it in many countries in Asia and America and it would definitely work!).

But use it in business and loans and short term debt like these MicroStrategy and 3 Arrows people my god,,, terrible idea. Did someone forget to tell these guys Bitcoin is volatile?

[Baofeng]

Bitcoin was created to be deflationary, so any increase in the inflation rate of fiat should naturally make people adopt Bitcoin more. If it's not happening according to the design of bitcoin we might as well believe the Feds news didn't have an effect on bitcoin whatsoever.

With what is going on, we can see bitcoin is still not out of the game. Bitcoin is one of the asset classes that is rated as a risk asset so I believe it will be greatly affected by the Fed, every time interest rates increase, assets like bitcoin and stocks move in the direction of the trending decrease rather than increase.
Bitcoin was created with a maximum supply as a hedge against inflation but that is not really possible right now because of the volatility and risk it brings.

Even stocks will be affected by any news of a Fed rate hike not just crypto. It's that the crypto market is so volatile that it will react more pronounce as this is not regulated, there could be sellers, manipulators who are trying to take advantage of the news and then speculators and investors filling up their bags.

So it's just a matter of time what numbers we will fall if there is a new fed rate hike. But always remember that bitcoin can bounce back from all of this and we are far from being out of the game.

[bbc.reporter]

It is certainly beginning to appear like inflation hedge is only being used as a storyline or a marketing tool by many bitcoiners to market bitcoin. I am sorry if this is insulting to much of you, however, it is not my purpose.

In any case, @adaseb, more bad news about another victim of Su Zhu and 3 Arrows Capital. This time it is Genesis Trading, owned by DCG which is also owned by Barry Silbert.

Bitcoin is inflation resistant this I always agreed,,, but yes, I think a lot of people in Bitcoin are misusing terms here and there. Then again,,, a lot of terms that are suited for stocks and bets have been applied to Bitcoin and I think we can say that these terms evolve. I see a lot of terms like Dead Cat Bounce that actually do not even apply to Bitcoin (but still people use it).

You hedge a bet by placing it on something that is opposite to what the bet is supposed to do, so maybe some people bought Bitcoin as an inflation hedge and it totally worked (you can use it in many countries in Asia and America and it would definitely work!).

But use it in business and loans and short term debt like these MicroStrategy and 3 Arrows people my god,,, terrible idea. Did someone forget to tell these guys Bitcoin is volatile?

Yes, however, as a buyer of bitcoin on November I saw the value of my inflation hedge go down more than 50% with also 8% less value of the currency valuing the inflation hedge. This circle jerk must end and we must use objective thinking.

In any case, there is nothing wrong in using bitcoin as collateral as long as the loans are overcollaterized. Blockfi, Voyager, Genesis and Celsius used customer deposits for undercollaterized loans to 3 Arrows Capital.

[xSkylarx]

I believe it's possible to hit that price if we are going to look at the ATH last 2017 where it is $20k then dumped at $3k in 2018. It made 85% correction that time and if history repeats itself, it's likely to reach $13k from its previous high $69k. I also see that price to be the bottom of this market correction. There is a lot of crisis going on now on the global market so I expect that we will dump more from here until the end of the year.

[$crypto$]

After the price of bitcoin from $ 30k to $ 20k in a week then anything can happen, in my opinion the opportunity to drop to $ 13k is very large, especially now that many haters continue to spread FUDS so that it makes many investors panic, if the price of $ 13k occurs then I suggest to buy.

There are those who think that the price fell at $13k as resistance but I'm not sure that my benchmark is $16k/17k as the lowest but any outcome can change when all markets are down, therefore buying bitcoin is the right time now or under it.

Since the decline of course panic from investors there must be some of them selling and switching to safer assets but if we can survive in the current situation we can make more purchases and after the economy has started to recover we will know better growth.

[leea-1334]

But use it in business and loans and short term debt like these MicroStrategy and 3 Arrows people my god,,, terrible idea. Did someone forget to tell these guys Bitcoin is volatile?

Yes, however, as a buyer of bitcoin on November I saw the value of my inflation hedge go down more than 50% with also 8% less value of the currency valuing the inflation hedge. This circle jerk must end and we must use objective thinking.

In any case, there is nothing wrong in using bitcoin as collateral as long as the loans are overcollaterized. Blockfi, Voyager, Genesis and Celsius used customer deposits for undercollaterized loans to 3 Arrows Capital.

Yes,,, sorry for you and whoever bought in November, I mean I bought too, but same amount all the time, November, March, June, all the same to me, just different amounts of BTC, but to put your business on the line and gamble with balance sheet is irresponsible and reckless.

I knew these guys all took risks but the way they did it, they are acting like casino gamblers, seriously! And nothing wrong with casinos but the way they did it is with coats and borrowed money.

[GeorgeJohn]

Bitcoin was created to be deflationary, so any increase in the inflation rate of fiat should naturally make people adopt Bitcoin more. If it's not happening according to the design of bitcoin we might as well believe the Feds news didn't have an effect on bitcoin whatsoever.

This is the belief before where Bitcoin can be the safe heaven during the economic crisis but it looks like its not because the price trend follows the trend of the stock market and that issues with the inflation rate is something that needs to be address as well. There’s a possibility for a more cheaper price with Bitcoin, better to be ready with your cash and buy if you see this opportunity. The market is very unstable right now, let’s all hope for the best and see if Bitcoin can recover this year.

Bitcoin can be recovered when we do not expected it, because right now I'm not expecting or having it in plan that it can accelerate anytime soon this year. I believe that bitcoin still long duration for this remaining months of 2022 to be shown positive symptoms of recovering.

When observing the level of it's market movement this period, and it seems that cryptocurrency is moving downwards any moment. But observing what is happening here i think cryptocurrency will be generally increase directly in year 2025 but it's a just assumptions and it's not merely authentic.

[Findingnemo]

After the price of bitcoin from $ 30k to $ 20k in a week then anything can happen, in my opinion the opportunity to drop to $ 13k is very large, especially now that many haters continue to spread FUDS so that it makes many investors panic, if the price of $ 13k occurs then I suggest to buy.

There are those who think that the price fell at $13k as resistance but I'm not sure that my benchmark is $16k/17k as the lowest but any outcome can change when all markets are down, therefore buying bitcoin is the right time now or under it.

Since the decline of course panic from investors there must be some of them selling and switching to safer assets but if we can survive in the current situation we can make more purchases and after the economy has started to recover we will know better growth.

But in crypto anything is possible, don't you remember the price went to $3K from its previous all time high which is also unexpected so just be ready for anything and you/we are lucky if price gets too low since the next will be the bull market so price will rise again for sure in few months or atleast in the next 3 years so you will be happy about selling that time because at that time the current price may look like a dust.

[kensaii]

After the price of bitcoin from $ 30k to $ 20k in a week then anything can happen, in my opinion the opportunity to drop to $ 13k is very large, especially now that many haters continue to spread FUDS so that it makes many investors panic, if the price of $ 13k occurs then I suggest to buy.

There are those who think that the price fell at $13k as resistance but I'm not sure that my benchmark is $16k/17k as the lowest but any outcome can change when all markets are down, therefore buying bitcoin is the right time now or under it.

Since the decline of course panic from investors there must be some of them selling and switching to safer assets but if we can survive in the current situation we can make more purchases and after the economy has started to recover we will know better growth.

But in crypto anything is possible, don't you remember the price went to $3K from its previous all time high which is also unexpected so just be ready for anything and you/we are lucky if price gets too low since the next will be the bull market so price will rise again for sure in few months or atleast in the next 3 years so you will be happy about selling that time because at that time the current price may look like a dust.

Yeah, I remember how long Bitcoin stays at 3k-4k price so I know that everything is possible in the crypto. Cause crypto is based on market outlooks and trust from investors, holders, buyers,... IF all of those people are affected somehow, they also will reflect their choice to the market. If Fed turns the stock market into chaos, then crypto will be the same, $13K after the Fed rate hike is possible.

[Mpamaegbu]

Focus now turns to how the token could react to a Fed rate hike later in the day.

Bitcoin is a coin, not a token.

[FlamingFingers]

There is nothing that is impossible, no one ever thought that bitcoin would crash to 17k, imagine when everyone was calling for $100k  per bitcoin in 2021 when bitcoin was around $65+and someone tells you that bitcoin would crash to $17k in 2022, you would be like what is such person smoking to be thinking about such price, there has been calls for sub 17k but a lot of people thought that that's the bottom which is not, let's see how it plays out before August

[leea-1334]

I knew these guys all took risks but the way they did it, they are acting like casino gamblers, seriously! And nothing wrong with casinos but the way they did it is with coats and borrowed money.

Exactly, And now they are the reason why crypto market is now plummeting since there loan already liquidated and there collateral Bitcoin will be forced to sell in the market to become fiat to the lender. I know that this crypto project is just confident enough on Bitcoin price while they don’t have safety precautions on scenario like this which price dump down below the price which most institutional traders buy price.

Well, yes, they are one of the main reasons,,, but I always believe in the power of retail/mainstream traders. Yes these big guys lost billions and billions and make the news and scare everyone but I think the majority of market volume on exchanges are still speculators in the tens of thousands of people,,, the you and me people who all thought they could get rich quick.

And the shitcoins NFTs and memecoins and deficons. We cannot blame companies as 99% of investors were retail people.

[fullhdpixel]

After the price of bitcoin from $ 30k to $ 20k in a week then anything can happen, in my opinion the opportunity to drop to $ 13k is very large, especially now that many haters continue to spread FUDS so that it makes many investors panic, if the price of $ 13k occurs then I suggest to buy.

There are those who think that the price fell at $13k as resistance but I'm not sure that my benchmark is $16k/17k as the lowest but any outcome can change when all markets are down, therefore buying bitcoin is the right time now or under it.

Since the decline of course panic from investors there must be some of them selling and switching to safer assets but if we can survive in the current situation we can make more purchases and after the economy has started to recover we will know better growth.

For now you are right. 16k is so far the lowest but there might be a possibility that we can drop below than it. It's true than an outcome can change when we are down, because usually when the price is down or we are in a bear, it will then be followed by a recovery or a rise in the price which is also called a bull.

Indeed that buying now is the best thing that we can do if ever we haven't bought anything yet and we can choose to not all in but we can left out some funds in case a more dump is being recorded. I only don't think that more purchases can come once the bull is already starting. I think noobs will only do that but a true pro investor only buys at low.

[yhiaali3]

The US Federal Reserve’s decision to raise interest rates had a clear impact on the crypto markets especially Bitcoin, but then Bitcoin absorbed the shock and made a slight bounce, we are now almost stable for a while at the 19-20k$ price. But it is not excluded that the decline will continue below 14k$ or maybe even lower, in any case, this is not a big problem, but rather a good opportunity for investors to increase their bitcoin portfolios at low prices, waiting for the bullish market that I expect to come soon, perhaps before the end of this year.