BTC goes below 30k after US inflation rate reports

Mpamaegbu

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Quote from: teosanru on June 10, 2022, 12:03:14 PM

Technically btc should go up with news linked to inflations in fiat markets because logically Bitcoin's point becomes stronger with every bit of depriciation in dollar.

I think so too and I believe what happened to price around the time of the news is nothing but market correction. Come to think of it, Bitcoin has remained below $30k for few days now before the news. So, it's nothing much apart from the OP zooming in on the graph on the hourly TF and that made it seemingly alarming.

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I think this was just a market reaction to the news immediately

No, I don't think it was. If anything, Bitcoin is taken as a safe haven for the troubled dollar. I think it was a mere coincidence that Bitcoin price dropped at that time. That's not even a severe drop compared to what we've seen in the past week. A check shows that Bitcoin did $26,700 a few days ago while it's still trading around $27,500 at the moment.

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Quote from: Rufsilf on June 11, 2022, 04:36:19 PM

Anyhow, we can really expect that kind of price fluctuation even without such a US inflation report. We are in the bear mode market, perhaps the price is moving to that range of $28k - $31k. This is not a big surprise, not even a big news to cause panic but yes, we can't just ignore their contribution to the market trend as this country also has the influence.

Well, something we need to keep our trust stronger and keep our minds positive. We can just surpass this situation just like before.

US being a major country with increased cryptocurrency usage, anything happening in USA will have direct impact over the market of bitcoin. That's the reason why the price drop is connected with the rising inflation of USA. The bear trend keeps the price within specific range. This can drop even lower. Today it has marked low price reaching near to $28k.

PrimeNumber7

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Quote from: teosanru on June 10, 2022, 12:03:14 PM

Technically btc should go up with news linked to inflations in fiat markets because logically Bitcoin's point becomes stronger with every bit of depriciation in dollar.

You are correct, however, you must also factor in interest rates. As interest rates go up, the value of a dollar in the future becomes less valuable. This is important because if a speculator believes the price of an asset (such as bitcoin) will go up by 10% in one year, this return will become less attractive when interest rates increase.

I believe the reason why some are selling has to do with the fact that expected future returns on speculative assets now look less attractive with interest rates rising.

The price decline has more to do with the anticipated future higher interest rates that will be necessary to deal with inflation, than inflation itself.

Stalker22

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Quote from: Rufsilf on June 11, 2022, 04:36:19 PM

Anyhow, we can really expect that kind of price fluctuation even without such a US inflation report. We are in the bear mode market, perhaps the price is moving to that range of $28k - $31k. This is not a big surprise, not even a big news to cause panic but yes, we can't just ignore their contribution to the market trend as this country also has the influence.

Well, something we need to keep our trust stronger and keep our minds positive. We can just surpass this situation just like before.

I remember early 2021 when we made $ 39k for the first time and we thought we had reached the sky, but as we all know Bitcoin didn't stop there. Now it has been almost six months that we have been in negative territory and that is mostly because of the war, the Russia sanctions, the oil price, and the decline in the global economy. Of course, there are other factors but as we already know, correlation is the mother of all relationship.

Rufsilf

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Anyhow, we can really expect that kind of price fluctuation even without such a US inflation report. We are in the bear mode market, perhaps the price is moving to that range of $28k - $31k. This is not a big surprise, not even a big news to cause panic but yes, we can't just ignore their contribution to the market trend as this country also has the influence.

Well, something we need to keep our trust stronger and keep our minds positive. We can just surpass this situation just like before.

Leviathan.007

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Once the again the price dropped down for a few and people are worried about the price of bitcoin because they do not have a log term vision, in the first place we should look deeper and understand the price is not still even near the danger and it was at this level during the last two weeks so that's not surprising and we shouldn't be worried about it, regardless of that even if the price goes to the lower levels and pass the key support area with a sharp price movement still the long term holders will stay safe because they actually don't care about the price in short term. with a proper plan and risk management plan they will stay safe even when the price falls down to lower prices and that's what we have to do in this situation.

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I think that while 8.6% is bad for a strong economy like the US, it's not a reason to panic. Also, the last few years have been particularly bad, so it's not surprising that there's an inflation issue. Finally, I don't think there's any link between the news of USD inflation prognosis and Bitcoin price getting down. Not to mention that the fluctuation of the price is very small, not big enough to even look for a cause behind it.
If anything, I think that dollar losing value can motivate people to look at Bitcoin because inflation is not something that can happen to it.

amishmanish

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US dollar is a big market factor and any major fluctuation in US currency shows corresponding responses in market, but we should not ignore the fact that markets are actually coming out of grip of dollar, already several countries like russia, iran and china are exploring the alternatives to dollar as payment avenue, and though there is a fall in bitcoin value due to US inflation. I long run this won't remain the case and we will see bitcoin go strong as it is a contender to fill the vacuum created by dollar devaluations

Ale88

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Quote from: tomahawk9 on June 10, 2022, 10:42:51 AM

Thoughts?

At this point is pretty clear that this is going to be a difficult year, we just need to hope that we're close to the bottom even though I wouldn't be surprised if bitcoin would go down to $20k, approx the old ATH. In that case I don't even want to think where the altcoins would go...

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To be honest, this isn’t affecting a lot to the market.
I mean we have already seen Bitcoins down from what the current price is.
Yes we can say that it has hampered the growth a bit. As we have seen Bitcoins hitting 32k usd and suddenly within few hours it dropped to 29k usd.
Nevertheless I would suggest to wait and hold in this bear market.
Soon the market will recover and you will see the profits.
If possible don’t sell your Bitcoins now in such a lower price. Just hold the coins for more few weeks.

Cryptodebjoe

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Well but before the inflation news I've personally observed from coindesk chart that for the past 1 week BTC has been oscillating between 27k and 32k so I think that pattern will remain this week irrespective of the news....

LogitechMouse

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Negative news = negative effect or no effect at all with Bitcoin.
The good thing though is that the negative news that we are seeing right now only have a short term effect towards Bitcoin price.

Instead on focusing on the short term, maybe let's just focus on the long term. Inflation in the US has been high already since the start of the year. Right now, there are no good news happening, so maybe just expect for the worst to happen.

theskillzdatklls

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It's crazy there's been virtually no safe haven for invested assets outside of maybe real estate? And if you were holding fiat you are getting obliterated by inflation.

Technically speaking, this should point to a good situation for Bitcoin/crypto but alas, here we are.

That said, a lot of the asset prices, Bitcoin included, were semi fake from all the money printing that is getting dialed back now.

wxa7115

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Quote from: DoublerHunter on June 10, 2022, 05:51:08 PM

Quote from: coolcoinz on June 10, 2022, 05:35:41 PM

~snip~
I don't see any connection with inflation. High inflation should actually pump bitcoin because your fiat money is losing value so it's much better to buy something while you can.

^Definitely right and I agree with this.
There is no connection with the inflation of the country and I think not the only US has been experiencing this inflation, all countries must be there is inflation. I don't think why those social media authors will always compare the economic event compare to BTC price which I think they are completely irrelevant. BTC will grow on its own.

What happens is that the average person does not really have too much knowledge about how the markets work, so whenever they see a big news they suppose the price of bitcoin should immediately move to reflect that news on its price.

But the markets are not that simple, even if a news were to eventually be priced by the market this is not an instantaneous process and it is something which could take months or even years, so the high level of inflation all around the world may have an effect on the price of bitcoin on the future, but with the bearish conditions we are experimenting it is impossible for this to happen so soon.

buwaytress

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Yeah, and with Eurozone also set to hike interest rates, it's really hard to find hope for a rally beyond the 31/32k range we've been touching ever so slightly. It's definitely in keeping with the wider macro economy/stock correlation too, so anyone who thinks Bitcoin's burst free should take note, or hope BTC does something special and keep guys like me open-mouthed.

Silver lining: accumulation can continue for a bit!

Zanab247

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Inflation haven't left any countries, every country has been experiencing this. United States experiencing the worst inflation in its 40 years of history needs to be rectified. If I'm not wrong, during the last two years there is stagnation in growth all around, in particular very few corporate networks that provide online services reached big milestones. This stagnation out of the pandemic is getting reflected now on the market of fiat and cryptocurrency. For now even if price drops down to $25k isn't a surprise.

Yes, inflation is still affecting many countries because of the pandemic that reduced world economy some years ago. I think many governments are trying their possible best to make money available to fight the inflation in their land before the end of December because many citizens find it difficult to feed their families in the country. I believe the price of bitcoin is not dropping because of other countries inflation, it dropped down to $27,000 to allow people to buy and hold for the price to move to $60,000 before the end of July before they can sell to make a good profit.

ultrloa

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Quote from: tomahawk9 on June 10, 2022, 10:42:51 AM

Bitcoin and the crypto market went down today after reports came out that the US inflation rate hit 40-year high in May

US Inflation Quickens to 40-Year High

BTC price chart. Source: bitstamp

Quote from: https://cointelegraph.com/news/bitcoin-price-falls-under-29-5k-after-unexpected-40-year-high-us-inflation

"Despite hopes that the worst of the inflationary period was over, May's CPI print came in at 1% month-on-month and 8.6% year-on-year — a return to levels not seen since 1981. Estimates had only forecast around half as much of a jump for last month. Bitcoin immediately felt the pinch as the market appeared to balk at the prospect of further monetary tightening to tame increasingly aggressive price increases."

Thoughts?

People need to relax because what happen in US for sure doesn't do anything on what happen on crypto and $30k is not newly reached since we already entering on that zone even last month, So people need to relax and stop relating on things which we see not doing any harm to BTC. Also If you just hear this thoughts to other people who think about the inflation is the reason why bitcoin dump today better not to believe since they are using this to change the phase of the people and then create negative sentiments to people who can read their article.

pawanjain

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Negative sentiments around bitcoin can't stop themselves from hitting it again and again huh.
Seems like more negativity is spread in the market but the inflation has not only impacted bitcoin but also all other assets in the market.
The stocks are falling too. It's gonna be a long time this time before see the new ATH.

mindrust

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May go down a lot more from here because to kill the inflation, the FED will probably have to raise the interest rates much harder than they did till now. Stocks are going down too. Surprisingly gold is holding OK. Not only holding OK but it went up by like 1.7% yesterday. That was pretty interesting imo. The analysts I follow say that we might see low $20k's in a few months. If that happens the real panic will start because bitcoin never went below the ATH's of the older bull runs before.

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Quote from: jackg on June 10, 2022, 11:59:02 AM

This probably didn't have much of an effect on bitcoin's price and is just two things happening at once.

I think US monetary policy has been speculated to be maintaining an inflation of about 8% so this could be that just catching up. Surely inflation dollars being reported as high would be a good thing for crypto too as there's extra cash moving through the economy.

That's an interesting way of viewing the current situation. Yup, I can clearly see how the USD price is going up, and it's particularly beneficial for freelancers paid in USD like me, so I keep track. And because I'm getting more than what I was expecting from projects I accepted weeks ago, I am planning to use the excess to buy crypto. I bet other people like me have the same idea too. So this makes sense.

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