BTC dumps on high inflation report..

[P2PECS]

Don't panic too much about what happened to BTC, because I think all stocks are falling economically and will surely improve slowly. Just like BTC, which corrects its price until it completely recovers and returns to normal as usual. So keep an eye on the movement of BTC but if you invest long term, sit back and enjoy the flow of the movement, everything will be fine in the future.

What do you understand by "normal as usual"?

With the volatility BTC has I don't know what you mean. In the long term the trend is clearly up but we conceive the cycles as similar, the normal thing is that until after the next halving the price won't go up much.

[davis196]

Important report comes out that inflation is pretty bad (USD)..

Bitcoin dumps off a cliff..

This is the exact opposite of what Bitcoin is supposed to do..

Has Bitcoin strayed too far from its purpose?

I wouldn't say that Bitcoin "dumps off a cliff". The Bitcoin price had dropped severely in the past, the current drop seems like a pretty normal percentage for a highly volatile asset.
I also wouldn't say that the price drop was caused by this inflation report. The high inflation was expected and I highly doubt that anyone is surprised by the levels of inflation in the US.
The Bitcoin price couldn't break above 25K USD so many traders decided to sell and get their short term profits. The selling pressure increased and the price dropped bellow 20K USD. That's a normal thing in the market. There aren't any factors right now, that can potentially create a stable bull run and build a FOMO phase on the BTC market.

[Wind_FURY]

I am really curious why this is happening, the dumps when the inflation report is released, maybe there are just some panic sellers who are FOMOd because of the report.

It's very simple: with the report, even more aggressive rate hikes are expected.

Some are already talking about 9%:

'Investor Mark Mobius says US interest rates could peak at 9% if inflation keeps rising. "So you have 8*% CPI. That means you have to have 9% interest rates," said Mobius, who co-founded Mobius Capital Partners after spending more than three decades at Franklin Templeton Investments.'

Mobius Sees Fed Rates as High as 9% If CPI Keeps Rising

Even without reaching that level, the most likely scenario is that rates will continue to rise, which means less money in circulation and people will have less money to invest. Investors are therefore anticipating events: they see a pessimistic scenario for financial assets and act accordingly. The news affected everything. Markets in general, not just bitcoin, for this very reason.

The inflation is sticky in the U.S., therefore the Fed might have no other choice but take a path for a "hard landing". Interest rates may be raised to levels unexpected, more tightening by selling back U.S. treasuries, and on the government side, more taxes to get more money/liquidity out of circulation. We will not like it, and it will put more tension on the market, and that might make it crash again. BUT save what you can save today, it will be another golden opportunity to Buy the DIP, and HODL.

[xSkylarx]

I also wouldn't say that the price drop was caused by this inflation report. The high inflation was expected and I highly doubt that anyone is surprised by the levels of inflation in the US.

How can you say the cpi report has nothing to do with the dump. After their report S&P500, gold, bitcoin, and EUR/USD took a nose dive simultaneously. If this inflation continues to worsen, I'm pretty sure more dumps will happen and bitcoin might go lower than $18k. Many are speculating that we haven't reach the bottom yet in this bear season so I think this economic crisis will be the one that will trigger it in the coming months.



Credits: Tradingview

[pgbit]

BTC was dumped due to the high inflation report as the rate came in higher than expected.Because high inflation affects  FED directly and due to this FED interest rate increases.After a few days the news of FED interest rate is coming. Now there are more chances that the earlier interest rate was 0.5 This time the interest rate may increase from 0.75 to 1.0.Interest rate or inflation rate has this effect on the market When interest rates were low, people took more loans and invested in Bitcoin or the crypto market.Because due to high inflation, people will take less loan and the market volume will decrease, so BTC will dump.When people won't invest So the market will not move.Hence BTC may touch 17500 again.

[Wind_FURY]

I believe we should readjust our perspective, and viewpoints on Bitcoin to be a hedge against debasement, and as a hedge against what the cabal behind the Federal Reserve and other Central Banks around the globe could possibly do, not a financial hedge. The market for Bitcoin is connected to the legacy market because it is traded against fiat, BUT the distribution of the currency, its supply, and the network itself is absolutely independent.

[jostorres]

I think it’s important to note that bitcoin didn’t necessarily dump on the high inflation report, the stock markets crashed today and that’s what’s caused bitcoin to take a shit. The real issue is that bitcoin can’t seem to separate itself from traditional investment markets , and yes I think this is a real issue as it continues to happen.

Maybe because people just can't move on from these traditional markets where they can't seem to make a bitcoin independent market where it doesn't need to rely on others. Right now, this is how it is but with some good positive progress in the future, it will gonna change and will gonna separate itself from the traditional market. We just need to continue supporting it so that it won't get away from its original goal and will gonna be steady progress toward a great financial revolution.

People are expecting way too much from bitcoin, or even crypto in general. Why not stay around here on adoption? I mean I hope that the price goes bigger, but aside from being a good investment asset, and accepted in a few places over the world, why would we need something else?

It is an alternative and that is the power of it as well, if it becomes the main thing people use instead of an alternative then it is going to create a lot of troubles for a lot of people. I personally like the current level, it is not as unknown as it was 8 years ago, but it is not as famous and worldwide as it will be in 8 years, this place we are in is a good in between zone that I really enjoy.

[LegendaryK]

Important report comes out that inflation is pretty bad (USD)..

Bitcoin dumps off a cliff..

This is the exact opposite of what Bitcoin is supposed to do..

Has Bitcoin strayed too far from its purpose?

Bitcoin Proof of Waste design can't handle the energy inflation price increases.
Proof of Stake coins outperform BTC PoW design for lower costs and are not susceptible to extreme increases in energy prices.

PoW is dragging BTC down, and venture capitalists are not around this time to pull btc out of the danger zone.

So is this time going to be different from all of the others,
Yep, energy costs have never tripled on it's weak PoW design before.  

Bitcoin Devs have refused to fix PoW energy waste , and now all BTC holders are literally going to pay for that failure. 

[Stella Mese]

I think bitcoin is still on its right way. because I was told by a friend of mine who can quite rely on when it comes to market analysis. He even told me last week that bitcoin has the potential to drop to $19k in the near future if you look at the results of the chart analysis he describes. although I don't really understand. but I did what he said. and I prepared money buy bitcoin at the current rate. and it turned out to be real. so this market analysis is on track. but it turned out to be a coincidence that this decline was also caused by a high rate of inflation.

[worldofcoins]

I would say that it has impacted the price, but to say that we are in a dump? I don't think so.

I think we're in bear market at the moment and can't be certain as to where the bitcoin price will go in the long run. I made a thread where there is a discussion of bitcoin hitting 45k before the end of this year or not.

We are in bear market, so obviously every investors is very prone to this kind of negative news and so are very trigger happy to pull the sell button if they see the price going down.

People are reactive to what the news tells them, and the rich know how to make use of news in their favor.
I'd say people who depend on news forecasts for certain stocks tend to lose in long run.

But the good thing is that the bleeding has been halted and we remain above the biggest support of $20K. And this effect should be just short term, so there is no need to worry as bitcoin could gain back what we have lost today.

At the time I'm writing this post, the bitcoin price is around 19.7k, pretty much close to 20k like you said.
I also agree with this line where you mentioned it would be just short-term, I think BTC will skyrocket more than 60k next time we see a bull run and it's also expected by me at least that we can see a market cap of 4 Trillion at least before the end of 2024

[famososMuertos]

We must maintain the individuality of thought of the basic premises of bitcoin, that translates into the success of the whole, which unfortunately we did not manage to have although it may seem so, that is, there is a dissociated group of what bitcoin has as its objective , even that group that I mentioned is not even possible to hold bitcoin or worse yet they have never made a transaction, that group is distorting the objective for which bitcoin should work in a certain way, it is a mix of users who understand bitcoin and how it should be at usefulness of the current moments, but they are oriented in the traditional matrix of information and data of traditional institutions.

Sometimes it is hard to think that the price of bitcoin in that range of $(18k-20k) or $"x" is the best price for the current situation; so, everything is going well!.
I think is not the price that down the bitcoin, which in this case becomes an opportunity given the circumstances for the "people" by inflation to invest in bitcoin, if not the time it takes to recover it, since a weakness of small investors (the people) has the tendency the majority do not always have diamond hands.

[tjtonmoy]

It's just the situation has been created from the world conflicts. I personally had to sell out my 80% of holdings to manage the expenses. If we can overcome this situation, then there will be more what we can see from BTC and other cryptocurrencies. But for now, this will still continue for a bit more time, as I can see. People are afraid to loose assets because of the current market condition. This will be gone but sure will take some time to be stable again.

[tbterryboy]

I think bitcoin is still on its right way. because I was told by a friend of mine who can quite rely on when it comes to market analysis. He even told me last week that bitcoin has the potential to drop to $19k in the near future if you look at the results of the chart analysis he describes. although I don't really understand. but I did what he said. and I prepared money buy bitcoin at the current rate. and it turned out to be real. so this market analysis is on track. but it turned out to be a coincidence that this decline was also caused by a high rate of inflation.

Yes, because despite of what happened (the decline) btc still manage to hold some of its value and it became stable at this point. Later on we will see that btc will recover and will attempt again to break those unexplored areas. Is it already proven that the decline is caused by the high rate of inflation for you to say that what happened is only a coincidence? Because according to the op, btc should work as opposed to inflation. Its value must rise while the inflation is high outside and the value of the fiat is declining.

The decline in btc must be caused by other things. It can be the fear of people due to that upcoming mt. gox coin distribution or people are temporarily switching to eth.

[8rch7]

It's just the situation has been created from the world conflicts. I personally had to sell out my 80% of holdings to manage the expenses. If we can overcome this situation, then there will be more what we can see from BTC and other cryptocurrencies. But for now, this will still continue for a bit more time, as I can see. People are afraid to loose assets because of the current market condition. This will be gone but sure will take some time to be stable again.

It's true as you said, all of this was created because of world conflicts, bitcoin and other cryptos are indeed under pressure, this happened because the Federal Reserve has raised interest rates, reports of high inflation are also very influential on the decline in bitcoin prices, in fact every investment decision is in our hands, before we buy and sell crypto we must learn first, before we lose our money.

[kryptqnick]

Important report comes out that inflation is pretty bad (USD)..

Bitcoin dumps off a cliff..

This is the exact opposite of what Bitcoin is supposed to do..

Has Bitcoin strayed too far from its purpose?

I think the misunderstanding and unexpectedness is due to the most common mistake people make in the area of economics: they assume that economic actors (buyers, consumers, investors, sellers) are behaving rationally and acting in their best rational self-interest. It's been shown over and over again that humans are in fact way less rational that we tend to assume. People often buy what they can't really afford and don't think of the consequences. Or they surrender to panic and sell what they rationally know they shouldn't sell because emotions play such a big role. People from developed countries aren't used to dealing with high inflation rates, rising utility bills and things like that. So they're feeling insecure, uncertain about the future, emotional. Thus bad news leads to panic, not to reasonable search of solutions. Yes, Bitcoin isn't susceptible to inflation and that could save wealth during recession. But it won't if not enough people believe in that and if panic prevails.

[rdbase]

No, not at all!

There were many other factors at play causing the massive drop-off of bitcoin's price this week.
As it always does from past events have shown.
US regulators are looking hard at bitcoin and Biden (president of the USA) has mentioned during his speech just this week he plans to curb it's citizens on some facets of it's use in the country. And has assigned a whole task-force dedicated to cryptocurrency crime division.

Here are some links to what has happened in the past week on this causing the dip in price:
https://www.reuters.com/technology/biden-administration-wants-more-crypto-enforcement-digital-asset-rules-2022-09-16/
https://www.coindesk.com/policy/2022/09/16/bidens-executive-order-produces-few-answers-in-crypto-reports-from-us-treasury/

[Mauser]

Important report comes out that inflation is pretty bad (USD)..

Bitcoin dumps off a cliff..

This is the exact opposite of what Bitcoin is supposed to do..

Has Bitcoin strayed too far from its purpose?

It really is counterintuitive to see people sell bitcoins and other crypto currencies when inflation is on the rise. I am still not sure if investors are afraid of the high inflation or general economic outlook. And what are these investors switching their money from cryptos into? Stocks are also down and it doesn't feel like investors are heavily buying them. Holding cash seems like the worst idea you could do right now. With inflation rates above 10% you are losing so much purchasing power of your cash. The only rational to hold all that cash is if you expect another crash and things too get much worse. I am not so negative and think it's much better to stay invested and sit out this bear market. As long as we are not selling we are not realising any losses and will profit as soon as prices start to rise again. 

[noormcs5]

I also wouldn't say that the price drop was caused by this inflation report. The high inflation was expected and I highly doubt that anyone is surprised by the levels of inflation in the US.

How can you say the cpi report has nothing to do with the dump. After their report S&P500, gold, bitcoin, and EUR/USD took a nose dive simultaneously.

It was because of this CPI data that bitcoin dumped and as a result the whole crypto market dumped. Since the dump was strong and sharp, the bitcoin hasn't been able to recover and is still trading below 20K.
Today is Sunday and it will be interesting to know how the market starts in next week. I am hoping that the market will start recovering from early next week.

[knowngunman]

The pound partially falls below the USD and the EUR as UK interest rates rise to around 7%. partially because their new fiscal strategy is now logical. London is a major global financial center, thus this has a significant impact on the financial markets and drives up the dollar. The market was thereafter marginally impacted. Consider lowering taxes while attempting to combat inflation. In fact, SP500 achieves a target of 362 precisely! The Double Bottom hypothesis has worked out well so far as $Bitcoin reached 18.1K. Will they rebound or crumble from here, though? I believe it all hinges on the US dollar and US 10-year yields.

[$anounimus$]

It seems like only a matter of time until BTC gets wider circulation and more recognition. Bitcoin is still new, especially when it comes to government approvals, and there is certainly room for growth. But if Bitcoin continues down this path of extreme fluctuation due to centralization, then Bitcoin will simply become another centralized currency like USD, and Bitcoin's value may become dependent on what certain central parties say about the value of Bitcoin. This rising interest rate also has its own influence on BTC for now.