Well in the past Bitcoin followed what the nasdaq index typically did. When the nasdaq went up, so did Bitcoin. And the same was true when it went down.
So if the CPI Is high it means higher fed rates and lower stock prices and hence Bitcoin should go lower which it did. However for the past few days Bitcoin hasn’t been correlated as closely. Basically Bitcoin went up and stocks went down.
But if the old trend returns then higher CPI generally means Bitcoin will head lower as stocks head lower.
It appears that correlation between consumer price index (CPI), stock market and Bitcoin is weakening, largely due to successive collapse of Banks in the USA which has resulted in loss of confidence in fiat system among the public. This paradigm shift has created new interest in Bitcoin and led to steady increase in its price above 28,000, and it is likely to surpass 30,000 in coming weeks. This has changed market sentiment from negative to positive and most of participants think that Bitcoin was bottomed out at around $15,000 in 2022 and we may never see that price again in future.
I feel like that is a short term one though, I mean surely it is shifting at this moment I am not arguing against that, but it is also not looking like a big long term thing, it could go right back to being like old self again. We need to see a big break from that level and then be different for a long time before we can be sure about what's going on, otherwise it is not going to really change all that much.
I hope that it will do a lot better and should eventually look like it is going to be a big deal, but for the time being it feels like we are doing a job that is a bit different at the moment and that is not permanent yet, it feels temporary. Or maybe that is just me, and I feel it is temporary and it has already become permanent, only time will tell.
I feel ya, buddy. Predicting the future of any investment is a wild ride, and with Bitcoin's ups and downs, it's even wilder. But I'm all in on the Bitcoin train. Its decentralized vibe, open-book ledger, and limited supply make it a sweet deal for investors seeking a safe spot during shaky times.
Sure, there might be short-term price swings, but I'm betting on Bitcoin's unlimited long-term potential. As more businesses and folks embrace Bitcoin for payments, its value's gonna keep on climbing. So let's not get stuck in the daily price fluctuation. Let's zoom out, focus on the big picture, and get stoked about the game-changing future Bitcoin's got in store for finance.