Fed policy on Bitcoin worries investors, how do you react? - page 2.

Coin_trader

copper member

Activity: 2800

Merit: 1179

Leading Crypto Sports Betting & Casino Platform

Quote from: Novita on September 02, 2022, 01:27:22 AM

The price of Bitcoin and a number of other crypto assets has been observed to weaken over the past 24 hours amid investor anxiety about the US Federal Reserve's hawkish policies.
My question is: can Bitcoin bounce back at its Psychological level?

It’s possible it need time to bounce back. You can use the pre pandemic event result to Bitcoin as reference for your question. Bitcoin is on this kind of Psychological worse than this before when pandemic first hit and many people secure money in fiat because everyone is afraid for economic crisis but Bitcoin recover bounce back stronger up to the ATH after a couple of months when global market started to recover again. Bitcoin just need to hit a solid ground to create a footing for another cycle of price recovery.

Bitcoin will never stay down because many user still believes and just wait for the perfect opportunity to buy. You can see that many user still posting interest of buying despite Bitcoin is dumping hard. This is a proof that Bitcoin can bounce back anytime when all crypto traders unite.

P2PECS

member

Activity: 173

Merit: 74

Quote from: Pmalek on September 02, 2022, 02:57:11 AM

Perhaps not, but forget about the reported numbers for a bit and consider what you can buy with your euros. Price increases are not 3% or 5% or whatever each country reports. Everything in your shopping bag is up by 30%, 50%, and +100%. And that's a concerning fact. I can't refuel my car to go out and shop for groceries the way I could months ago.

The CPI is downwardly adjusted, we agree on that, but it is not that adjusted. Some items may have gone up by 50 or 100%, but prices in general, no. My guess is that real inflation will be between 15 and 20%. Annual rate in the EU.

If inflation now seems bad to you, you don't want to see a real hyperinflation scenario, which is a minimum of 50% monthly but can be much more.

Pmalek

legendary

Activity: 2730

Merit: 7065

Quote from: P2PECS on September 02, 2022, 02:45:58 AM

You don't know the concept of hyperinflation in detail, otherwise you wouldn't say that

Perhaps not, but forget about the reported numbers for a bit and consider what you can buy with your euros. Price increases are not 3% or 5% or whatever each country reports. Everything in your shopping bag is up by 30%, 50%, and +100%. And that's a concerning fact. I can't refuel my car to go out and shop for groceries the way I could months ago.

The CBDC restart of the economy is brought to you by Pfizer. Tongue

P2PECS

member

Activity: 173

Merit: 74

Quote from: Pmalek on September 02, 2022, 02:38:18 AM

Electricity prices are going up, gas prices are exploding all around the EU,

Not only in the EU, but also in the USA and many other parts of the world.

Quote from: Pmalek on September 02, 2022, 02:38:18 AM

and the inflation is turning to hyperinflation.

You don't know the concept of hyperinflation in detail, otherwise you wouldn't say that:

Quote

Hyperinflation refers to rapid and unrestrained price increases in an economy, typically at rates exceeding 50% each month over time.

What Is Hyperinflation?

The euro zone is not moving from 9% annual inflation to 50% monthly inflation.

Pmalek

legendary

Activity: 2730

Merit: 7065

If this article came out when Bitcoin fell from $24k to below $20k, it would have made more sense. But what spectacular downtrend do you see in the last 24 hours? The value is the same, if not higher by 0.5-0.6%.

Electricity prices are going up, gas prices are exploding all around the EU, and the inflation is turning to hyperinflation. Maybe we can already consider it to be hyperinflation. In such a state of turmoil, you can't expect investors to start pouring fresh money into bitcoin when it's uncertain if they will have heating this winter.

Despairo

hero member

Activity: 1064

Merit: 843

Nah it's not affect investors since they're a long term holder, but it's just affect to trader who make money from events or rumors. The high inflation make them can't buy many thing and they don't have enough side money to buy Bitcoin or invest, since it's will be used for emergency funds. Moreover due to less demand that make Bitcoin price decrease, they're not confident to buy it.

But I'm using this advantage to accumulate more Bitcoin since when the inflation already quite stable and the whole economy back to normal, it will increase money circulation and encourage people to invest their money.

mk4

legendary

Activity: 2870

Merit: 3873

Paldo.io 🤖

Quote from: Novita on September 02, 2022, 01:27:22 AM

Re: Fed policy on Bitcoin worries investors, how do you react?

Pretty simple — by continuing to keep buying at low amounts consistently, because I simply don't know what's going to happen. Like, we're going to have announcements concerning the federal reserve like every month or so; I'm not going to coin flip every single month.

Poker Player

legendary

Activity: 1372

Merit: 2017

It's not just about Bitcoin and cryptocurrencies. It has affected financial markets in general. Anti-inflation economic policy reduces the money supply, and with less money in circulation, the price of financial assets falls.

Quote from: Novita on September 02, 2022, 01:27:22 AM

My question is: can Bitcoin bounce back at its Psychological level?

I don't see it going up much in the next few months. In the best case scenario, I think we would get close to $30k, but until after the next halving I don't expect much joy.

Novita

full member

Activity: 350

Merit: 101

Trident Protocol | Simple «buy-hold-earn» system!

The price of Bitcoin and a number of other crypto assets has been observed to weaken over the past 24 hours amid investor anxiety about the US Federal Reserve's hawkish policies.
My question is: can Bitcoin bounce back at its Psychological level?

Topic: Fed policy on Bitcoin worries investors, how do you react? - page 2. (Read 358 times)