Few weeks ago, I commented on a similar post to this, which was speculating the reason behind Bitcoin dropping about 2 or 5% within a short time.
It seems like most of these 'media houses' simply Google recent events whenever Bitcoin price drops and writes an article on how that is what stimulated the price action. This is mostly inaccurate as it's just a regular day in Bitcoin market cycle.
Zooming our of the charts a bit more, this drop would be quite insignificant.
This thread is a better fit in speculation board as that discussed trading action and price movements, but it's not really a general topic for Bitcoin discussion.
Topic: BTC goes below 30k after US inflation rate reports - page 3. (Read 392 times)
Inflation and the U.S.A baby boomers beginning retirement is causing a run from all speculative investments into more stable investments,
such as cash, bonds, gold & silver.
This is a natural progression of the aging demographics when people that retire switch from speculation to more investments that are less likely to lose against inflation. For others, due to the inflation, they need the fiat to survive causing the sell offs.
Since crypto & stocks are sold to buy food & energy , expect the sell off to get much worse for the foreseeable future.
* Some would say crypto can be used instead of cash, while true, Merchants and Utilities would immediately sell for fiat , as they can't afford holding crypto that can drop large % in a single day, which still creates a sell off. One upcoming concern for btc holders is how long Tesla car company will hold their btc, as their sell off would definitely impact the BTC market price. *
such as cash, bonds, gold & silver.
This is a natural progression of the aging demographics when people that retire switch from speculation to more investments that are less likely to lose against inflation. For others, due to the inflation, they need the fiat to survive causing the sell offs.
Since crypto & stocks are sold to buy food & energy , expect the sell off to get much worse for the foreseeable future.
* Some would say crypto can be used instead of cash, while true, Merchants and Utilities would immediately sell for fiat , as they can't afford holding crypto that can drop large % in a single day, which still creates a sell off. One upcoming concern for btc holders is how long Tesla car company will hold their btc, as their sell off would definitely impact the BTC market price. *
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 this was just a market reaction to the news immediately overall this will should give green signs in bitcoin as this is an absolutely positive news. If anyone has another point how these can be connected please do tell.
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.
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.
bitcoins price is not the lowest its been in the last 14 days. so id say.. calm down..
and also zoom out of the hourly/minute charts..
no one can judge overall market sentiment of reactions to long term inflation results as being the cause of temporary minute/hourly price changes..
so dont be checking the per minute/hourly level charts trying to assign reason for all small movements and dont get emotional/concerned with the per minute/hourly movement
instead
look at the the quarterly charts and assign a bottom amount it ever reached. and then if it reaches the quarterly bottom again.. . then try to find reason.
and also zoom out of the hourly/minute charts..
no one can judge overall market sentiment of reactions to long term inflation results as being the cause of temporary minute/hourly price changes..
so dont be checking the per minute/hourly level charts trying to assign reason for all small movements and dont get emotional/concerned with the per minute/hourly movement
instead
look at the the quarterly charts and assign a bottom amount it ever reached. and then if it reaches the quarterly bottom again.. . then try to find reason.
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
Thoughts?
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?
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