BTC price drops as US inflation reaches 40-Year High

[buwaytress]

And, just as observed a few months ago (July/August jobs report I believe?), after the stumble in price right after worst-than-expected figures, after half a day price has actually clambered back ABOVE day's start.

Makes one wonder, what happens when we finally get a report with figures better than expected.

Just explain this to me please anyone. How even in a normal scenario will inflation in fiat markets effect bitcoin negatively.

When inflation rate is high, federal reserve may increase the interest rate to control money supply and decrease the inflation rate.
Given the current high inflation rate, it's expected that federal reserves increase the interest rate by 75 basis points in their next meeting. This is affecting all the markets including bitcoin.

And because interest rates are so high, wealthy are converting to cash, short term deposits earn guaranteed profit while being highly liquid. Virtually zero risk dollar wealth growth. And when you consider how other major and minor currencies are currently plumbing decades low vs dollar, USD's never been so attractive in my lifetime.

[cryptomaniac_xxx]

Ah, so that's what happened. Out all day and as usual sneaked a look at price, couldn't immediately say if it was more market news or a delayed reaction from yesterday when there were stock selloffs in Asia.

Yeah, I think that the Asian market is our savior, or at least not selling, usually the sell off happens during North American time. But I guess time has change as well, market selling is anytime at this point, regardless on what region we are.

More pain to come, interest rates not going to let up. BTC still surprisingly resistant though, no?

This has been the case, when we hear CPI news and it is usually negative, crypto and traditional market reacts. And I do agree that we are still surviving at his point, the lowest low is still $17,500.

[eaLiTy]

~
Last time I made a thread about the increase in the U.S. consumer prices and its impact on the crypto market was in June , we saw the same behaviour in the market

All credit goes to the Biden Administration and with the mid terms coming he wanted the OPEC to ramp up the oil production and now they have rejected and he has warned the Saudi's about repercussion of not following their orders  . In a short period of time they created a shit show and you cannot expect anything better if the policies are shit and most of the time spending time in dividing people which does not make any sense.

To be frank i am sad to see that the BTCitcoin market is also dancing around the tunes of the overall market situation which was inevitable but the good old days were better.

[Tony116]

And now bitcoin is up again and above $19.4k, like nothing ever happened, it can be seen that bitcoin is resisting this CPI news pretty well. But with the CPI not falling as expected, the Fed will be disappointed and continuing to raise interest rates to new highs is inevitable. Many rate prediction charts have removed the 0.5 level and replaced the November low of 0.75% and the 1% level mentioned. If the Fed decides to raise 1% then bitcoin and the market will see a terrible dip.

[SquirrelJulietGarden]

And now bitcoin is up again and above $19.4k, like nothing ever happened, it can be seen that bitcoin is resisting this CPI news pretty well. But with the CPI not falling as expected, the Fed will be disappointed and continuing to raise interest rates to new highs is inevitable. Many rate prediction charts have removed the 0.5 level and replaced the November low of 0.75% and the 1% level mentioned. If the Fed decides to raise 1% then bitcoin and the market will see a terrible dip.

FED revealed their plans months ago that they will increase interest rates more until they can control the crisis. Inflation was done during the pandemic with which people think stock market, crypto market got benefit from money printing. Now they think about it oppositely but if they think carefully, they should realize consequence of money printing, in 2020 or 2021, not have to wait until this year.

They don't have to wait for news from FED about CPI, interest rates and anything like that.

[Ultegra134]

Honestly, despite the awful economic situation out there, Bitcoin is actually not performing as badly as some of us are pointing out. Over the past few months, Bitcoin has approximately settled at the $20.000 mark, with only a few occasional ups and downs ranging between $18.000 and $21.000. Compared to other assets such as indexes or stocks that are in a free fall, Bitcoin is actually performing quite well.

We live in a day and age where everything is correlated with each other. While cryptocurrencies were first meant to be decentralised online currencies, Bitcoin has evolved into an asset similar to gold. It'd be foolish to expect it to perform at its best during such a period of recession.

With that being said, I'm generally satisfied regarding Bitcoin's performance in the past few months, I honestly anticipated a way larger drop in price, way below $20.000, but it seems that it's successfully resisting.

[Leviathan.007]

Recently we see a bearish market and the price of bitcoin is falling which can be a correction in the long term because the trend is still upward in long term regardless of what happening right now in the market, but the inflation rate in the USA is increasing in the long and short term which can be a bad signal for them to see the inflation rate reaching the 40 years high this can be a big difference between these two bad situations.

[STT]

If anything the inflation makes BTC to rise more probable as dollar itself becomes worth less, you are reducing the common denominator to prices so like a balance scales the other side to the price is more likely to rise.
  The reason why we see the opposite is main markets are quite fearful of rising interest rates and other measures (if inflation is persistently high).    BTC is still quite well comparatively, we are past the 30 day average and I hope make a good challenge to the 50 day.

[Lucius]

Even if we don't have the current situation, I believe that Bitcoin would still be in its regular bear market, although it seems to me that the price would be at least 20-30% higher than it is now. What pushed us this low is surely the biggest crypto scam in history with the Terra/Luna fiasco that caused over $60 billion in damage, and from which the crypto market will not recover for a long time.

Pandemic, inflation, recession and war have their consequences, but a lot of people lost everything they had because some hypocritical little bastard played with what he shouldn't have.

[BitcoinGirl.Club]

I don't care about the short term stuff. It's all too complicated anyways. I just like to keep it simple and hold!

Those day/week traders are making good money from it when bitcoin is going down to $19k and moving up over $20k.
But one day suddenly the price will keep moving up and will not going to go back to the bottom they were expecting. In the mean time they sold the BTC at somewhere $20k to $21k. Imagine their face for selling early. LOL

Hodling is the best in any investment, if you consider Bitcoin as your investment then just HODL.

[Vinaa77]

"US Inflation Faster Than Expected in September, Bitcoin Falls"

Of course inflation in the United States has an influence on the price of Bitcoin. However investors should be able to maintain the current price of Bitcoin. Of course there is some crypto that is sacrificed, or the price will drop even more even though the Bitcoin price remains at $19k. For the crypto price pump not seen at the moment, may have to wait for 2024 to come.

[savetheFORUM]

Recently we see a bearish market and the price of bitcoin is falling which can be a correction in the long term because the trend is still upward in long term regardless of what happening right now in the market, but the inflation rate in the USA is increasing in the long and short term which can be a bad signal for them to see the inflation rate reaching the 40 years high this can be a big difference between these two bad situations.

That was not recent mate but the bears have started long time ago. What we see recently are only a small declines which was still part of the long term bear but you are right that despite all of this, there is still a way that btc can recover and pump soon so people shouldn't despair too much. Instead they need to use this as an advantage for bagging more coins.

What we can't only disregard right now are the economic problems such as the inflation which rates are still increasing continuously. This is one of the factors which could affect the btc price negatively because maybe people are pulling out some of their money to aid them.

[tygeade]

If anything the inflation makes BTC to rise more probable as dollar itself becomes worth less, you are reducing the common denominator to prices so like a balance scales the other side to the price is more likely to rise.
  The reason why we see the opposite is main markets are quite fearful of rising interest rates and other measures (if inflation is persistently high).    BTC is still quite well comparatively, we are past the 30 day average and I hope make a good challenge to the 50 day.

People have seen the increase of inflation even today, and think that inflation causes bitcoin to drop. What they do not realize is that the real inflation increasing stuff happened a year or two ago when pandemic happened and there were trillions of dollars printed, and that meant devalued dollar and that is why people were capable of buying bitcoin in bulk as a whole world, now?

Now there are no printing and there are situations where people ended up putting their money into interest, meaning they took it out of the market and people cannot see that for some reason.

Yes, the inflation is still high but they are fighting against it, which hurt the price of bitcoin, we need to learn to see that.