BTC dumps on high inflation report..

[so98nn]

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.

Imagine that happening after uncertain period of time. Currently the interests on the loans has increased severely, the home loans are up to 11.50%, personal loans are whooping 13% and add +1.5% on private financing in India. You can literally think about any investment at such high rates if your wallets are already fat enough. Banks however, kept the interests on Fixed deposits, Savings in the same range as it was before.

This has obviously started that chain reaction of costs on everything so even bitcoin seems to be at the side of inflation getting affected day by day.

Peeps around the world has to overcome the previous loans and increased interest rate is not only applicable to new applications but also to the existing loans.

[1715376075]

1715376075

[1715376075]

1715376075

[1715376075]

1715376075

[1715376075]

1715376075

[1715376075]

1715376075

[Poker Player]

Peeps around the world has to overcome the previous loans and increased interest rate is not only applicable to new applications but also to the existing loans.

That only happens in variable interest mortgages as far as I know. Or the mixed ones, which have a variable part. I don't know how it will be in India but in the rest of the loans, such as personal loans, they are usually at a fixed interest rate and it doesn't matter how much the rates go up or down once the loan is signed. You are charged the interest rate of the contract you have signed without variation.

[Franctoshi]

Important report comes out that inflation is pretty bad (USD)..
Bitcoin dumps off a cliff..

It was not only Bitcoin that got the dump , Gold price dumped too and most dollar currency pairs equally got their share. This news event and uncertainty in the market for investors contributed to the dump, though I was expecting Bitcoin to have a correction immediately just after we touched the $22.6k zone, until we start getting clear picture of how the future is going to be in order for investors to gain confidence, we will continue to get panic sellers in the market.
However, Bitcoin coming back to retest the $20k level is a good correction for BTC in my own opinion, But until we start seeing further downwards movement below $19k-$18k, I still remain bullish to see Bitcoin to go tap the $25k zone again.

[Sebas.tian]

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.

I agree with you, because we are in bear season which is a normal thing for Bitcoin holders to observe in this season before it will move to bull season for those that purchased when the price of Bitcoin was low in the market to sell to make a good income. I think, the price of Bitcoin will soon return back to $40,000 for Bitcoin investors to experience bullish market that will make people to believe that Bitcoin is different from fiat money in this season of high inflation in the world. Since the price of Bitcoin has moved to $21,000, showed that bear season will soon be over for both long term investors and short term investors to start earning from their investments.

[worle1bm]

There were only little pumps and now we are again in the red circle with prices again fluctuating between $20k-$21k as people are again selling off the coins and investment are not at big levels.

But on the inflation rise we can assume that people's saving are becoming less as they have to spend more on the same goods and services so the bitcoin portion is shifted towards fiat only to manage the expenses.People who are in need of funds and some others who believe in nonsense talks are taking out their funds even at low levels only so this might be another reason but the situation will be normalised again with some investment at low prices and we will see recovery so just hold yourself.

[Cryptmuster]

It was not only Bitcoin that got the dump , Gold price dumped too and most dollar currency pairs equally got their share. This news event and uncertainty in the market for investors contributed to the dump, though I was expecting Bitcoin to have a correction immediately just after we touched the $22.6k zone, until we start getting clear picture of how the future is going to be in order for investors to gain confidence, we will continue to get panic sellers in the market.
However, Bitcoin coming back to retest the $20k level is a good correction for BTC in my own opinion, But until we start seeing further downwards movement below $19k-$18k, I still remain bullish to see Bitcoin to go tap the $25k zone again.

Gold holds up well compared to other assets. And probably there will be very few panic sales now, those who wanted to have already sold. And if there are sales during a further fall, then most likely it will be speculative sales, with the expectation to sell now in order to buy it back later at a cheaper price. This fall, which is associated with the release of the inflation report, will not drag on for a long time, the market will soon recover, and in order for the fall to continue, more negative news is needed...

[NotATether]

Bitcoin dumps off a cliff..

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

You have the weak hands who aggressively dump Bitcoin to thank for that.

People for some reason think that cryptocurrencies are in the stocks & bonds category and are somehow connected to the world economy in terms of price.

But you know, I think this thinking is going to stick on people for the forseeable future. Because its the only way that governments want to recognize Bitcoin and other crypto as.

[DeathAngel]

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 we’re still so early that this shouldn’t be a surprise. We will decouple, it’s just a matter of when. Admittedly though it’s very frustrating. When bitcoin matures as an asset this kind of sell off reaction will stop. Bitcoin is still a massive inflation hedge. Add up annual inflation since 2009 & then look at how much bitcoin has increased % wise.

[yazher]

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.

[Wind_FURY]

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's not actually inflation that's causing Bitcoin's decrease/fall in price. It's the actions of the FED against inflation which is causing a recession. The FED is tightening and raising rates, pulling out liquidity from the economy, which lowers demand and causes a bear market.

It may be a mistake, my mistake, to say that Bitcoin is a financial hedge against inflation. Because it might not be financial. The more I understand, I believe Bitcoin is a hedge against the cabal behind the FED. If they break the current financial system with all their policies and manipulation, Bitcoin will remain and keep chugging along producing block after block.

[goldkingcoiner]

In the short term I think its mostly a dump affected by the FUD. People were expecting for Bitcoin to dump along with their other investments because they do not really understand Bitcoin is a hedge against inflation. Although its not an instant hedge against inflation. If the markets are falling people expect their money to be safe in the form of traditional currency. Of course, that is a huge mistake from my perspective but again, its a superficial dump. Long term, or even in the near future, we will definitely see a pump for this very same reason. It just takes a bit longer. Thats totally fine by me. I will buy up the cheap Bitcoin and patiently wait.

[pawanjain]

Yeah even I was shocked to see bitcoin dumping today. I could see the red candle getting bigger and bigger in front of my eyes and I was like why the hell is it happening at a time when bitcoin was recovering so nicely.
I guess even the ETH merge cannot spike up the market now since its too close now and bitcoin is falling like anything.
But why is the inflation report effecting bitcoin price so drastically. High inflation should increase the price of bitcoin isn't it ?

[Lucius]

Bitcoin dumps off a cliff..

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.. ..

It's strange that you use such apocalyptic terms, because when something falls off a cliff, it's usually dead or broken into pieces. Do you think Bitcoin is dead, once again?

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..

We could not influence who will own Bitcoin, nor what someone will do with that same Bitcoin - and people will always find a way to turn things to their advantage, and what most believe in is money and profit. It is naive to think that Bitcoin could have remained immune to human stupidity and greed, especially if everyone is talking about the need for as much adaptation as possible. If we are going in the direction of bringing Bitcoin closer to as many people as possible, we have to accept the consequences that come with it.

[tbterryboy]

Gold holds up well compared to other assets. And probably there will be very few panic sales now, those who wanted to have already sold. And if there are sales during a further fall, then most likely it will be speculative sales, with the expectation to sell now in order to buy it back later at a cheaper price. This fall, which is associated with the release of the inflation report, will not drag on for a long time, the market will soon recover, and in order for the fall to continue, more negative news is needed...

That is expected since gold is relatively stable than the others. It didn't drop hard so people are going to panic less and will sell not their holdings but they can always continue buying more.

Bitcoin and gold are known as speculative assets so what happened lately can also be called like that (speculative sales) but I think more people will sell at the pump than when the price is dumping because many people are also doing the same thing, making the price dump more successfully than the when it's already dumping as the majority will only buy and hodl their assets and I think that has nothing to do much with the inflation anymore.

[Myleschetty]

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?

No, this is not the exact opposite of what Bitcoin ought to do because it doing the exact thing programmed by Satoshi but the issue is that we ignore the fact that the Bitcoin market is currently in the correction season.
The reason behind the Bitcoin dump is not inflation.

[blockman]

I was thinking of the same that bitcoin could always be the opposite when inflation is hitting that much. But we've seen that all together, the other markets have been dumping as well. I'm thinking that the party is just over and we have to be a little patient again until it goes exactly opposite again.

People are panicking over the dump, as if this has never happened before, this might be a good opportunity to buy and bitcoin's already recovering so I don't see how it might affect it long-term.

Well, the difference is that to be expected, if inflation is hitting high then bitcoin should do the opposite. But I guess, thanks to the higher interest rate and that's what we're not expecting to see. Yeah, true that just look at the opportunity then.

[GreatArkansas]

People are panicking over the dump, as if this has never happened before, this might be a good opportunity to buy and bitcoin's already recovering so I don't see how it might affect it long-term.

Well, the difference is that to be expected, if inflation is hitting high then bitcoin should do the opposite. But I guess, thanks to the higher interest rate and that's what we're not expecting to see. Yeah, true that just look at the opportunity then.

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.
Even from the previous month, the dumps also happened when the inflation report is released.

On another side, if the inflation rate will decrease so Bitcoin will pump next time? It's become the opposite now.

[Warkop]

People are panicking over the dump, as if this has never happened before, this might be a good opportunity to buy and bitcoin's already recovering so I don't see how it might affect it long-term.

Don't be surprised by the current decline, it's not everyone's panic, it's actually the impact of inflation that has made many stocks plummet, and not just inflation, even this includes the effects of the aftermath of yesterday's pandemic, a lot of all companies and digital investments have plummeted so  Of course, we don't even know when this will end, so that's why everyone survived this onslaught..

[Don Pedro Dinero]

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.

[Jeger.Kiting]

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?

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.