Future prospects for bitcoin - page 2.

Wind_FURY

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Quote from: Kemarit on May 05, 2022, 04:12:39 PM

Quote from: auy on May 04, 2022, 12:21:19 PM

What do you think about the Federal Reserve System meeting?
Is there any chance that bitcoin will fall as the dollar strengthens if they decide to raise interest rates?

We've seen the effects just now, in the 4 hour timeframe, Bitcoin goes down hard as they Feds are going to increased the rate hike to fight off inflation. So this is a negative news not just for crypto investors, but for the whole financial market as well. The result? all of them went down hard, Nasdaq, crypto, S&P. So it just shows that we have some kind of correlation with other markets as well. So the last push to $40,000 was just a bull trap and for sure maybe some of us get caught very bad by this action.

Zoom out to the start of the year, or zoom out and start during November, 2021. It has been pricing everything in. Everyone in the Economics subforum has been talking about inflation caused by BRRR-money printing since 2020. We are currently feeling the effects right now. BUT, maximum zoom out, what does everyone think Bitcoin has truly been pricing in?

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https://twitter.com/naiivememe/status/1520743133306580993

adaseb

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There is a relationship. Right now every crypto trader looks for 2 things every month. One is the fed meeting and decision and another is the CPI print.
Usually prior the markets are very flat and become very volatile after the reports are out. Even though it has nothing to benefit from either, traders are taking those reports as a way to gauge their trading decision.

yhiaali3

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They have already raised the interest rate, but these are only desperate attempts, this will not help anything in my opinion because the dollar and fiat currencies continue to lose their value over time and print more paper, and at the same time Bitcoin continues to hold and rise, soon in the future we will see an increase in inflation and The banknotes continue to lose value despite all these failed procedures which I see as trying to revive a dead body.

fortuner

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Quote from: Kemarit on May 05, 2022, 04:12:39 PM

Quote from: auy on May 04, 2022, 12:21:19 PM

What do you think about the Federal Reserve System meeting?
Is there any chance that bitcoin will fall as the dollar strengthens if they decide to raise interest rates?

We've seen the effects just now, in the 4 hour timeframe, Bitcoin goes down hard as they Feds are going to increased the rate hike to fight off inflation. So this is a negative news not just for crypto investors, but for the whole financial market as well. The result? all of them went down hard, Nasdaq, crypto, S&P. So it just shows that we have some kind of correlation with other markets as well. So the last push to $40,000 was just a bull trap and for sure maybe some of us get caught very bad by this action.

Yes indeed we are currently stuck in a very bad situation, almost all tokens have decreased in price and if this continues to decline, we will lose more and more of our money.
Hopefully this situation will improve quickly and the price of bitcoin quickly reverses direction from its current price.

Kemarit

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Quote from: auy on May 04, 2022, 12:21:19 PM

What do you think about the Federal Reserve System meeting?
Is there any chance that bitcoin will fall as the dollar strengthens if they decide to raise interest rates?

We've seen the effects just now, in the 4 hour timeframe, Bitcoin goes down hard as they Feds are going to increased the rate hike to fight off inflation. So this is a negative news not just for crypto investors, but for the whole financial market as well. The result? all of them went down hard, Nasdaq, crypto, S&P. So it just shows that we have some kind of correlation with other markets as well. So the last push to $40,000 was just a bull trap and for sure maybe some of us get caught very bad by this action.

Captain Corporate

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Interest wasn't even increased all that much, this shouldn't really impact the market too much. The problem is that the number of people who took out their money to put into interest is tiny compared to all those who saw the interest rate and were scared and put their money in stablecoins to wait it out. That is right, I assume (maybe I am wrong) the drop didn't happen because of people who took out for interest, it was done by people who just got scared because of the news and panic sold all they had. This can't go on, we can't let the world news impact the price of bitcoin so much, it should be decentralized and not related to some FED news.

batang_bitcoin

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Quote from: Pesona1 on May 05, 2022, 11:01:17 AM

Quote from: batang_bitcoin on May 05, 2022, 07:03:36 AM

There's this connection that I've read before that bitcoin's price will be correlated to the impact of inflation and for that to happen, an increase in interest rates will be the factor of it.
I do believe that bitcoin's path will never go wrong and will be on a straight line no matter what the interest rates are and what the FED will say.

In my opinion, due to the increase in interest rates planned by the FED, of course it will have an impact on bitcoin, but whether or not the impact will be significant, of course we can't predict it so far, but certainly with the sentiment of rising inflation, the war in Ukraine, and tighter Fed policies, pushing higher volatility will occur in the market, right now bitcoin price is starting to decline around 6% but I think it will last too long because if the Fed too hawkish maybe we will see bitcoin price decline quite far.

It's normal to predict and you know what with these predictions, they don't have to be accurate or close to it. They just have to be said as long as there's a backup on why we think it's going to happen. And for this quick correction that we've just seen, I'm starting to be more excited on what's the possible bounce of it. It would be a greater bounce and usually when the market flushes a lot, you'll see that the comeback is going to be stronger.

Pesona1

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Quote from: batang_bitcoin on May 05, 2022, 07:03:36 AM

There's this connection that I've read before that bitcoin's price will be correlated to the impact of inflation and for that to happen, an increase in interest rates will be the factor of it.
I do believe that bitcoin's path will never go wrong and will be on a straight line no matter what the interest rates are and what the FED will say.

In my opinion, due to the increase in interest rates planned by the FED, of course it will have an impact on bitcoin, but whether or not the impact will be significant, of course we can't predict it so far, but certainly with the sentiment of rising inflation, the war in Ukraine, and tighter Fed policies, pushing higher volatility will occur in the market, right now bitcoin price is starting to decline around 6% but I think it will last too long because if the Fed too hawkish maybe we will see bitcoin price decline quite far.

batang_bitcoin

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There's this connection that I've read before that bitcoin's price will be correlated to the impact of inflation and for that to happen, an increase in interest rates will be the factor of it.
I do believe that bitcoin's path will never go wrong and will be on a straight line no matter what the interest rates are and what the FED will say.

davis196

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Quote from: Jawhead999 on May 04, 2022, 11:05:41 PM

There's no relation between Bitcoin and bank interest, so it's no chance to make Bitcoin fall due to bank interest.

The average bank APY doesn't even reach 1%, even there's a bank offer 2-5% APY it doesn't worth for investment. The higher interest rate, the higher money printed, this make fiat is more easier to get and inflation will increase. Even it's supposed people will save their fiat on banks and reduce the fiat's circulations, but in the end the fiat supply will increase. Saving doesn't make your fiat's value increase, but otherwise.

Nope,having higher interest rates means quite the opposite.The Federal Reserve might start selling more government bonds to the banks,therefore reducing the circulating money supply.Less money supply means lower inflation.The problem is that the interest rate increase won't be sufficient enough to lower the inflation drastically and having too high interest rates would make the US federal debt too expensive.
In summary,we might expect the US dollar to gain more value in the short term,while Bitcoin will stay in a stagnant market in the upcoming 1 or 2 years.

Lucius

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Quote from: Poker Player on May 05, 2022, 01:18:24 AM

~snip~
In this case as in others that could affect the Bitcoin, I think it may affect in the short term, but the fact is that within one cycle, and two, the price of Bitcoin will be much higher, regardless of what the FED or other factors have done.

This is something that people like you and me are counting on because we have been witnessing for some time that Bitcoin is superior to gold, fiat or stocks, but skepticism among most people is still at a very high level. Over the years, I have always tried to be someone who will try to explain to people the advantages and disadvantages of Bitcoin, but except for this forum, in real life I have encountered mostly huge walls of misunderstanding.

Back in 2015, I told people that they should invest a few hundred dollars in BTC, and most said that it would fail very soon, and it is interesting that most of these people think the same today. It is probably the influence of local factors like my central bank and various regulatory agencies that regularly warn of the dangers of such investment, and most people act like sheep and listen to great leaders.

The situation in which the ship is sinking and people instead of going to the lifeboats listen to the captain who says that everything will be fine, reminds me a lot of what is happening today.

Poker Player

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Quote from: Jawhead999 on May 04, 2022, 11:05:41 PM

There's no relation between Bitcoin and bank interest, so it's no chance to make Bitcoin fall due to bank interest.

The average bank APY doesn't even reach 1%, even there's a bank offer 2-5% APY it doesn't worth for investment. The higher interest rate, the higher money printed, this make fiat is more easier to get and inflation will increase. Even it's supposed people will save their fiat on banks and reduce the fiat's circulations, but in the end the fiat supply will increase. Saving doesn't make your fiat's value increase, but otherwise.

There is a certain relationship, not very strong, but there is, because interest rates affect the whole economy, and, whether we like it or not, Bitcoin is within the current economic system (far from being a P2P electronic cash system) that is used in most cases as an investment.

In this case as in others that could affect the Bitcoin, I think it may affect in the short term, but the fact is that within one cycle, and two, the price of Bitcoin will be much higher, regardless of what the FED or other factors have done.

Jawhead999

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There's no relation between Bitcoin and bank interest, so it's no chance to make Bitcoin fall due to bank interest.

The average bank APY doesn't even reach 1%, even there's a bank offer 2-5% APY it doesn't worth for investment. The higher interest rate, the higher money printed, this make fiat is more easier to get and inflation will increase. Even it's supposed people will save their fiat on banks and reduce the fiat's circulations, but in the end the fiat supply will increase. Saving doesn't make your fiat's value increase, but otherwise.

pooya87

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Changing interest rates have always been a band aid they put on the failing economy to manipulate the severe effects of inflation not to eliminate them and it will always be like this as long as they keep printing more and more money. In other words it won't "strengthen" dollar it just alleviates the pain.

Not to mention that when you look at the bigger picture fiat (including USD) is losing its value regardless of what desperate things the government is doing in short term.
For example rents have gone up 20% every year in US. Food costs are soaring and people are running out of money to buy groceries. Utility bills are rising as energy prices rise,... these are all signs of fiat losing its strength not gaining strength and that's due to its unlimited supply whereas bitcoin still has as it has always had limited supply!

What the future holds for bitcoin is only rise and more rise as adoption increases specially as fiat tanks.

adaseb

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We already know that the fed will keep raising rates till the end of the year, we will end up at like 2.5% or so. So this is all priced in.

Many people knew about this last week when it was hinted that tapering is ending and rates will have to go up. The stock market with Bitcoin priced it in.

Only time that a fed meeting will have a big affect is if they do a surprise hike, or raise by more or less than 50bps. But right now everybody is expecting these 50bps hikes to go on.

auy

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What do you think about the Federal Reserve System meeting?
Is there any chance that bitcoin will fall as the dollar strengthens if they decide to raise interest rates?

Topic: Future prospects for bitcoin - page 2. (Read 358 times)