BTC dumps on high inflation report..

[eddie13]

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?

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[MinoRaiola]

The fear of losing money (Bitcoin) is probably even higher than the cleverness. Many are worried about the cost of electricity and gas. The additional costs are rising and many can't afford it and are tapping into their cash reserves. Investments maybe more stopped or temporarily suspended to wait for the winter.

This is the exact opposite of what Bitcoin is supposed to do..
Has Bitcoin strayed too far from its purpose?

Example: In Turkey, inflation is +70% and the currency where accepted by the people there is dollars and euros, unfortunately not Bitcoin which should be.

[tomos81]

The fear of losing money (Bitcoin) is probably even higher than the cleverness. Many are worried about the cost of electricity and gas. The additional costs are rising and many can't afford it and are tapping into their cash reserves. Investments maybe more stopped or temporarily suspended to wait for the winter.

This is the exact opposite of what Bitcoin is supposed to do..
Has Bitcoin strayed too far from its purpose?

Example: In Turkey, inflation is +70% and the currency where accepted by the people there is dollars and euros, unfortunately not Bitcoin which should be.

As the price of everything is increasing, the value of money is increasing abnormaly. Whenever you think Bitcoin dumping will surely come up. Prices of all commodities including oil, gas have increased due to which everyone is waiting for winter season. Those who want to invest must think that if they invest in the present time, there is definitely a chance of getting something good.

[LoyceMobile]

Markets are completely dependent on BRRR nowadays. It can only normalize when the economy makes sense again. You know, old fashioned things like positive interest and higher savings interest than inflation.

[Hispo]

...
Has Bitcoin strayed too far from its purpose?

It would depend on whom you ask 

For some Bitcoin is supposed to be a currency, for others Bitcoin is intended to be a hedge against inflation (digital gold) and others believe Bitcoin is a commodity, etc...
I have read that Bitcoin has followed the behavior of the markets before specially the technological stocks, perhaps this is the case?

I would not panic over this news and the behavior of Bitcoin, this is a market that has proven itself to be unpredictable and volatile, we all knew we are here for a wild ride, arent we?

[coolcoinz]

Bitcoin dumps off a cliff...

Maybe you haven't noticed but it was heavily pumped in the last 3 days and it dumped pretty much the amount it gained in that time.
This doesn't have to mean that people are abandoning bitcoin or getting scared of the inflation report. It can simply mean that short-term traders who recently bought decided to take profits.

It's funny that bitcoin can gain 15% and then dump 10%, but people will only see the dump ignoring that it's still up 5%

[eddie13]

Bitcoin dumps off a cliff...

Maybe you haven't noticed but it was heavily pumped in the last 3 days and it dumped pretty much the amount it gained in that time.
This doesn't have to mean that people are abandoning bitcoin or getting scared of the inflation report. It can simply mean that short-term traders who recently bought decided to take profits.

It's funny that bitcoin can gain 15% and then dump 10%, but people will only see the dump ignoring that it's still up 5%

Heavily pumped?
To me that was more like “recovered a little”..

It just recovered a tiny bit and now that’s all gone..

[Bitcoin_Arena]

Bitcoin dumps off a cliff..

- 9% in the last 24 hours, that's a normal day in the Bitcoin market, I was hoping to see something like - 40 to 50% to call it a dump 

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

is the bitcoin price supposed to move in only one direction minus any correction?

Has Bitcoin strayed too far from its purpose?

Depends on what time frame you are looking at. Are we going to judge Bitcoin from the time it started trading over a decade ago or from last week?

Also, i believe bitcoin's major purpose was to do with being an alternative electronic payment system 

[coolcoinz]

Heavily pumped?
To me that was more like “recovered a little”..

Call it as you will. Some people bought thousands of BTC in just 1 hour across many exchanges on September 9 and that led to the move up.

It just recovered a tiny bit and now that’s all gone..

You're wrong.
Firstly, that recovery started around 19200 and it's now at 20200 so 1k up from a few days back and more than 1.5k from the last week's lows.
Secondly, we're still in the same range we were in since June which is roughly 19 - 25k USD. It really doesn't change anything that Bitcoin goes up by 2k USD if it remains in the range. This is normal for a bear market accumulation period.

[Luqman]

The current dump in Bitcoin looks as usual. After Bitcoin has a little pump from September 10 to September 12, it is normal to have a dump today. As long as the Bitcoin price doesn't drop to $17k again, I think we don't need to worry about the price of Bitcoin. Remember it is a bearish period, a dump is something usual, we shouldn't be so worried about the temporary drops. I am also not really sure that the big factor to dump Bitcoin today is the high inflation.

Anyway, what is wrong with Bitcoin purpose? The current dump doesn't mean Bitcoin denies its purpose. Learn more about the factor of Bitcoin dump, it shouldn't be about inflation only, it can be about manipulation or other things.

[AjithBtc]

That is an expected dump in the market. People who all are enjoying the increase in the price will be now thinking about the interest rate that caused the price to drop. The price that was high on $22k+ have come closer to $20k. For now the market will try to have $20k as the support level. Thats a steep decline.

[eddie13]

Also, i believe bitcoin's major purpose was to do with being an alternative electronic payment system  

“Chancellor on brink of second bailout for banks”

The purpose of Bitcoin is to save the people from the evils of banks, especially the feds..
To take the power of printing money away..
The financial stranglehold they keep us in.. It’s basically slavery..

Meanwhile..
“Trudeau announced C$4.5 billion ($3.43 billion) in measures on Tuesday intended to provide relief from high inflation to low-income families.” (Yeah sure)

Print more money to ease inflation caused by printing money..


I think you guys just don’t get it..

I don’t care about the money.. I don’t give a shit about a little drop in price as if it hurts my pocket or it’s going to shake me out.. Lmao no..
I really care very little about short term price changes.. It may as well be $500 because I’m not selling shit at $20,000 or $30,000 or $50,000..

It’s the MEANING!
The price dumping on an inflation report like this means that most of the market is in the hands of people that are in Bitcoin for the wrong reasons.. Probably only trying to profit..

If not manipulate the market in the direct opposite of performance that would signify it fulfilling its purpose..

[OgNasty]

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 is a speculative asset.  It doesn't react to news or what fiat is doing.  Investors saw a bad report and took profits.  That's all there is to it.  Over a long enough period of time Bitcoin will outperform fiat due to inflation, but it's not going to be inversely correlated with every quarterly report.  When risky assets become back in favor Bitcoin will do what it does, but in bad times you must remember it is first and foremost a speculative asset (at least for now). 

[ChiBitCTy]

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.

[Dave1]

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?

Nah, just probably some manipulation behind and wanting to cause panic which it has as it wipe out the gain that we had. So let's wait for the market to settle in, weak hands has to be shaken out, or those who wanted to sell at $22k, get their profits and then reinvent when the price goes $19k-$20k. And to be fair, not just crypto, but the traditional financial market had a major flash crash a well.

[G_Besar]

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 don't think anyone strays too far from Bitcoin. Because Inflation is a decrease in purchasing power in all sectors of the economy and also the market. So what is happening to Bitcoin at this time is a natural thing and is not deviant because people are not able to make purchases gradually when inflation occurs.

Bitcoin crashes are a common occurrence, but if it is accompanied by inflation, then it is very visible as if Bitcoin is not doing what it should be doing. Though it is a natural thing and also very simple to interpret at this time.

[DapanasFruit]

Bitcoin remains the same...what is happening is that the investing market reacts to any kind of investment vehicle and that includes Bitcoin. This is the problem when an asset is included in the open market...its price can be affected by developments economically, politically and many other factors. Now, we also have to remember that Bitcoin can not live in a vacuum so there is no way to shield it from the influence of the many factors that can affect the world of investing. Maybe we should look the power of Bitcoin as anti-inflation in the long-range and not just on a day-to-day basis.

[TravelMug]

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

[Poker Player]

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

Bitcoin dumps off a cliff..

It wasn't just that. In addition, the US stock market, which was in positive territory, fell and the S&P 500 closed at -4%, and the €/$ pair, in which the € was recovering, turned completely upside down as well, because investors expect that the US monetary policy is going to tighten even more in the face of this.

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

Bitcoin is not supposed to protect or fail to protect from inflation in the short term, in a few hours like yesterday. In short periods of time it gets carried away like the rest of the market, what we will have to see when this period of inflation passes is whether it has protected itself well from inflation.

Markets are completely dependent on BRRR nowadays. It can only normalize when the economy makes sense again. You know, old fashioned things like positive interest and higher savings interest than inflation.

I may be wrong but I believe that higher interests than inflation will not be seen. They will raise whatever they are forced to raise but they will remain below inflation and with the desire to lower rates at the minimum that they can lower them again. Economies are too dependent on liquidity and they are already starting to have a cold turkey.

Even if Bitcoin is supposed to protect against inflation, what is clear is that in this period there is less money available and less money circulating, therefore, it is logical that there is not as much money entering the Bitcoin market.

[tbct_mt2]

Bitcoin is not a bullet point against inflation caused by governments and central banks.

As an asset, it has risk for anyone who owns it but without risk, no benefit, no profit. Big risk, big profit potentially. Bitcoin nowadays is safer considerably than in 2009, 2013 or 2017 and people can consider it as a safe investment if they plan to own it about 4 to 8 years.

If anyone want to jump in and get out within a few months, 1 or 2 years, risk would be bigger. Inflation, CPI, unemployment rates and other news can affect Bitcoin and drags it down. Now people can say Bitcoin is a failed product against high inflation but in future, after a long run, they will change and say, Bitcoin is a success. It is similar to wrong judgement about Bitcoin in the past.