Fed and Europe and Even Australia did rate cut but btc Still low - page 2.

Findingnemo

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Quote from: Polo7 on September 08, 2019, 06:29:32 AM

Fed, au and europe is about to cut rates.
But Why Bitcoin is Still low?
2017 was Even less rate cuts but btc was 20k.

Now everywhere is rate cuts but btc Price is Still low

Anyone knows Why its like that?

Price of bitcoin doesn't depends on anything so you expecting the price of bitcoin to increase when the interest rate reduced by the government is stupidity.

The price of bitcoin increasing on its own and the world economic structure can influence it but only the adoption will make the prices to go higher.

seraph_the_wise

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Quote from: el kaka22 on September 11, 2019, 04:28:04 AM

They are not net positive when it comes to stuff like gold though, I mean people do not pick the "safer" option of gold because in the end because of the rate cuts the stock investments and even other stuff becomes much more safer and since they are safer people do not go for the gold type safe options.

This is why bitcoin will not be affected by this, I mean we are talking about people who are moving from a safe option to another safe option, bitcoin is so crazy we literally went from 1k on 2017 summer to 20k on 2017 December to 3k in 2018 November to 10k in 2019 June, that is like 1.5 years of INSANE movements which means those people who prefer stuff like golds or stocks and looks for rate cuts will not be actually going to bitcoin route. These are "safe" people and bitcoin is not for them.

Indeed. The current trend is the movement to "perceived" safe assets such as gold, T-bonds and fiat currencies such as CHF and YEN. Some investors do have residuals in BTC, but these are already invested and won't move anytime soon.
This is in anticipation of a next bust of the global economy, and that capital will stay put for a while. This may or may not happen. If nothing comes to past, then the capital will re-enter the market in due time. If something does happen, well.. the same, but with a longer timeframe. Regardless investors want dry powder, and they want it now.

To put it simply, its unlikely BTC will reach a new high until the S&P500 reaches a new high.
A worldwide financial calamity may not be as positive for the health of BTC as many may think.

Ausgewielt

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Quote from: Polo7 on September 08, 2019, 06:29:32 AM

Fed, au and europe is about to cut rates.
But Why Bitcoin is Still low?
2017 was Even less rate cuts but btc was 20k.

Now everywhere is rate cuts but btc Price is Still low

Anyone knows Why its like that?

Interest rate is related to fiat money not bitcoin. Fed set the interest rates to control the amount of money that circulating in the market, if the interest rates is high then many people will save their money in bank so the inflation rate will decrease but if the interest rates is high then people will withdraw their money from bank because it is not so profitable and then invest their money to something else that more profitable. In my opinion, it is the impact of inflation due to interest rates cuts so that people's purchasing power is decrease.

Harlot

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Quote from: sana54210 on September 11, 2019, 11:34:13 AM

So who told you that it was the rate cut of 2017 led to the increase of bitcoin then, I believe that you must have picked up this mentality also from one of the Newspaper that you have on the media the which is not true. There were so many things that could have contributed to the increase of bitcoin in that 2017, and I really would not think it is because of this rate cut that t happened.

Rate cut is not enough to pull investors into cryptocurrency market, we have more investors in 2017 than we have now, the investor are still there, but not making much investment as much as the new ones will make. So what we need is investors and it is not all these rate cut that you people formulated out of nowhere or thin air. If rate was a good factor, I see no reason why it should not come to play this time around also.

The OP did the wrong assumption from the start and we don't need to judge him because of it, we are in a forum here and I don't think it will do any good to him if we are just pointing out his mistake. It may have made him believe that rate cuts translates to more money for the people that leads straight up to the crypto market and that is the wrong assumption to make. First of all rate cuts increased their buying power but it doesn't mean it will all go to investments, you will barely see people do it that way and they just spend the extra cash they have. If investors opt out on putting more money in their investments not all of them are involved with the crypto market so there is really no significance of rate cuts when it comes to investment in the short term.

bitgolden

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Americans are already investing into bitcoin, I don't know much about China and what they are doing right now, I know its legal to buy and sell bitcoin but illegal to do mine it? That is all I know and that means people can buy it and hold it which is sort of an investment. However I know Americans do invest into bitcoin, from all the way at the top of wall street to smaller players who invest just a portion of their income, all kinds of people are investing.

Not "all" people invest, I just mean all kinds of people, there is no demographic that doesn't touched bitcoin, which means bitcoin needs to get bigger in those communities instead of getting that communities involved which is a great way to start adoption. Price and adoption is not always hand in hand, just because price is low doesn't mean they are not investing.

Polo7

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Quote from: Theb on September 11, 2019, 11:44:37 AM

Like what others have said there's no direct correlation between interest rates (whether it increases or decreases) on Bitcoin prices. I know it's expected that people are willing to spend more since their disposable income have increased but it doesn't mean that the money will be going all to the crypto market let alone buy Bitcoin from it. Disposable income can be spent in multiple ways not only throught investment so even the stock market cannot show an immediate effect when interest rates are down.

In order to invest and Making profit we have to follow to some indicators!
Its Easy to undestood if rates are low the assets are high due the inflation. Btc is asset, Right?

And Yes 2017 was btc bull run due to high Fiat inflation, offcourse a lot cryptocurrency scams was out there, 2018 scammers dumped profits, As whales.
Those are facts

Theb

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Like what others have said there's no direct correlation between interest rates (whether it increases or decreases) on Bitcoin prices. I know it's expected that people are willing to spend more since their disposable income have increased but it doesn't mean that the money will be going all to the crypto market let alone buy Bitcoin from it. Disposable income can be spent in multiple ways not only throught investment so even the stock market cannot show an immediate effect when interest rates are down.

sana54210

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So who told you that it was the rate cut of 2017 led to the increase of bitcoin then, I believe that you must have picked up this mentality also from one of the Newspaper that you have on the media the which is not true. There were so many things that could have contributed to the increase of bitcoin in that 2017, and I really would not think it is because of this rate cut that t happened.

Rate cut is not enough to pull investors into cryptocurrency market, we have more investors in 2017 than we have now, the investor are still there, but not making much investment as much as the new ones will make. So what we need is investors and it is not all these rate cut that you people formulated out of nowhere or thin air. If rate was a good factor, I see no reason why it should not come to play this time around also.

buwaytress

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Because the scenario that you got sold on is not necessarily true... You've been reading about how low interest rates, unstable stockmarkets, uncertain times for economies and national currencies, would all lead to normal people selling their stocks, withdrawing their savings and pensions, liquidating their gold, all to buy bitcoin.

Great idea isn't it and almost rational but you have to understand that bitcoin is still a larger risk to all these people with money.

It is still an unknown entity and still, no matter what we say, more immature and more uncertain than anything they know.

5 maybe 10 years from now, that might change. But not today.

tadpole_bitfrog

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Quote from: Polo7 on September 08, 2019, 06:29:32 AM

Fed, au and europe is about to cut rates.
But Why Bitcoin is Still low?
2017 was Even less rate cuts but btc was 20k.

Now everywhere is rate cuts but btc Price is Still low

Anyone knows Why its like that?

I think now is not the time for American and Chinese entrepreneurs to invest in bitcoin now. because when the charts don't show the trend of the future, they won't put a lot of money into it.
That is why it still has to pay for many days in red but still no signs of going up. But believe me, in 2020, the price of Bitcoin will increase sharply in the near future due to the halving event.

el kaka22

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They are not net positive when it comes to stuff like gold though, I mean people do not pick the "safer" option of gold because in the end because of the rate cuts the stock investments and even other stuff becomes much more safer and since they are safer people do not go for the gold type safe options.

This is why bitcoin will not be affected by this, I mean we are talking about people who are moving from a safe option to another safe option, bitcoin is so crazy we literally went from 1k on 2017 summer to 20k on 2017 December to 3k in 2018 November to 10k in 2019 June, that is like 1.5 years of INSANE movements which means those people who prefer stuff like golds or stocks and looks for rate cuts will not be actually going to bitcoin route. These are "safe" people and bitcoin is not for them.

Polo7

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Quote from: South Park on September 09, 2019, 01:35:15 PM

Quote from: Polo7 on September 08, 2019, 06:29:32 AM

Fed, au and europe is about to cut rates.
But Why Bitcoin is Still low?
2017 was Even less rate cuts but btc was 20k.

Now everywhere is rate cuts but btc Price is Still low

Anyone knows Why its like that?

You have answered your question by yourself but you did not notice, if the price of bitcoin was at its all time high when the cuts were lower and now the price is lower than that despite the bigger cuts then that means that bitcoin has no relationship whatsoever with whatever the Europeans do with their economy, in a way this makes sense since bitcoin is not a national currency, in fact it will be interesting to know why you thought otherwise since I do not understand how you came up with that theory.

There was, just thanks to rate cuts the Bitcoin was Going Up!
Remember many People borrowed money to buy Bitcoin at the 2017.
So 2017 was huge money printings.
Now the rate cuts are Even bigger, but the people Don't Invest just Through Exchangers they buy private ways!

That's the Only Reason what makes any sense!

If the btc investors Will Buy the btc Same ways like 2017 When many Middle class investors took a loans then by Now the btc Price would be at least 30k.

My Only Question is what Next?

Let's see the facts here:
Investors have stored a lot Bitcoins out of Exchangers... If they want to liquitade their btc then they Will transfer btc to Exchangers.
Large sell Orders Will crash the market!

Betwrong

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Quote from: exstasie on September 09, 2019, 07:53:12 PM

~ The USD has been devalued by 20% since Bitcoin was launched.

But we can also say that BTC has been devalued by 50% since December 2017. This fact keeps many investors out of Bitcoin, and they will hardly jump in until this is no longer the case.

Quote from: exstasie on September 09, 2019, 07:53:12 PM

That printed money is being spread all throughout the global economy. It's impossible to know exactly how much would trickle into the BTC markets, but I think we can assume it's a non-zero amount.

Again, unless the purchasing power of USD drops by 50%, the effect can be zero.

However, I personally think that we will be over $19k soon, and then it will be a whole different picture.

exstasie

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Quote from: Strongkored on September 09, 2019, 03:36:42 AM

Rate cuts from FED, AU and Europe will affect another investment instruments, which they consider to be safer

Rate cuts are a net positive for stocks because they imply liquidity injections into businesses, due to banks having more excess capital. That increases market confidence.

However in theory, rate cuts should also represent a net positive for any investment asset (including BTC) because some of that injected capital will trickle into other markets. The USD has been devalued by 20% since Bitcoin was launched. That printed money is being spread all throughout the global economy. It's impossible to know exactly how much would trickle into the BTC markets, but I think we can assume it's a non-zero amount.

BitHodler

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Quote from: Kemarit on September 08, 2019, 05:51:09 PM

Are you saying that there should be correlation here? I'm sorry but there are no correlation and the only thing that will make the price go up is demand.

It's unlikely that there is any non-coincidental correlation, but we can't discard it either-- some investors tend to front run these events in the hope that an asset will appreciate in value, which to some lower degree might apply to Bitcoin.

This front running demand isn't any different from other forms of demand-- demand is demand no matter who the investors are, and no matter what their intention is-- price appreciation is what the end goal is for basically every buyer.

Buy the rumor sell the news is an example of front running. If the to be announced rate cuts this month will disappoint, speculative investments such as stocks will increase and gold decrease.

Bitcoin could actually benefit if stocks go up, but then again, we're currently stuck inside a nasty looking bearish pattern. The bias seems to be to the downside no matter what but there is always a probability that we break up.

South Park

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Quote from: Polo7 on September 08, 2019, 06:29:32 AM

Fed, au and europe is about to cut rates.
But Why Bitcoin is Still low?
2017 was Even less rate cuts but btc was 20k.

Now everywhere is rate cuts but btc Price is Still low

Anyone knows Why its like that?

You have answered your question by yourself but you did not notice, if the price of bitcoin was at its all time high when the cuts were lower and now the price is lower than that despite the bigger cuts then that means that bitcoin has no relationship whatsoever with whatever the Europeans do with their economy, in a way this makes sense since bitcoin is not a national currency, in fact it will be interesting to know why you thought otherwise since I do not understand how you came up with that theory.

1Referee

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Quote from: avikz on September 09, 2019, 01:56:51 AM

But do you know what has been benefited by these rate cuts - it's none other than GOLD!

See the price chart for last two months and you will understand the truth!

Gold has definitely been extremely bullish, but that's not too surprising with how it broke out of an ascending triangle that took years to play out. I'm pretty sure that a lot of the bullish sentiment comes from that, which then makes people believe that everyone is looking for Gold as a safe haven, which I doubt at this stage.

As long as the stock market indicates that it wants to go up, which is definitely the case, Gold will not bloom as much as when investors are looking at Gold to park their capital there because they are wary of a looming recession. Speculative investments are hit the first, and that's something I'm waiting for as confirmation.

On top of that, when the mainstream media is screaming RECESSION IS NEAR, and even the average joes share that sentiment, it gives me reason to believe that the actual recession is still relatively far away.

Strongkored

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Quote from: Kakmakr on September 09, 2019, 03:13:17 AM

Quote from: Gohs on September 08, 2019, 08:27:43 AM

-snip#

Wrong! The 2017 price pump was mostly due to the ICO boom that was happening back then. When large social media companies started to ban Crypto currencies, the price took a 80%+ price nose dive and things has not changed since then.

I have another perspective about BTC price in 2017, not because ICO mostly because the same pattern after halving, BTC price will reach another ATH.

Rate cuts from FED, AU and Europe will affect another investment instruments, which they consider to be safer from price changes that are too fast, and they usually make more investments to secure their assets from impairment, as is usually the case when there is interest rates cut there are indications that the country is experiencing or will experience an economic recession.

Kakmakr

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Quote from: Gohs on September 08, 2019, 08:27:43 AM

I don't think the price of BTC has anything to do with rate cuts.
2017 pump was mostly due to the fact that most people didn't know about BTC back then, now the story is different - everyone's heard of it.

The glamour has sort of worn down a bit.

Wrong! The 2017 price pump was mostly due to the ICO boom that was happening back then. When large social media companies started to ban Crypto currencies, the price took a 80%+ price nose dive and things has not changed since then.

Interest rate cuts will only have a small impact on the price, because informal traders will look for a hedge to protect their investments. We mostly have a debt driven global economy, so people with debt will not invest in Bitcoin, when there is a rate cut.. the majority of them will make more debt and some of them will pay back a higher amount on that debt to reduce it. Tongue

avikz

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Quote from: Polo7 on September 08, 2019, 06:29:32 AM

Fed, au and europe is about to cut rates.
But Why Bitcoin is Still low?
2017 was Even less rate cuts but btc was 20k.

Now everywhere is rate cuts but btc Price is Still low

Anyone knows Why its like that?

Why do you think that bitcoin will be benefited by these rate cuts?? When the economy slows down, central banks reduce interest rates so that their people can have more liquid funds in their pocket. So we all knew that rate cut was imminent from the beginning of US China trade war. But do you know what has been benefited by these rate cuts - it's none other than GOLD!

See the price chart for last two months and you will understand the truth!

Topic: Fed and Europe and Even Australia did rate cut but btc Still low - page 2. (Read 596 times)