Topic: If inflation is rising, why isn't crypto more valuable now? - page 2. (Read 527 times)

Both of those situations coming back to back caused the big crash for sure. I mean FED getting the money back from the market is a big deal for sure, and they will say that there will be some sort of situation where they will pump that money back again eventually, they will increase the rates to a point where the market will need more money eventually again, and they will drop the interest rates again which will pump a ton of money back to the market.

If we wait long enough then we will see that happening in the near future. I just hope that we get to see that, it is not going to be that much of a trouble and it is going to be quite common situation as well and we are going to end up seeing that very soon, so holding is very important.

Asking a general question on why crypto isn't rising amid the inflation on major fiat currencies hope you know most crypto are shit coin. It will be more better if you narrowed your sampling method on Bitcoin alone at least that way you can evaluate with good statistical proof how much Bitcoin has grown in the past 4 years.Not to mention how  Bitcoin grew from $1 to $68k in a space of 14 years. Gold and other valuables has been since time memorial with steady centralized price manipulation yet Bitcoin still stands above $30k. Diversified portfolio could be the only way to satisfy your quest

With the Luna incident, it had a fearful effect on investors, but before that, because of high inflation, the USA raised interest rates, so the stock and cryptocurrency markets were affected. Of course, with the bearish season this time it happened because of the withdrawal of investor funds from cryptocurrencies and of course later investors will return along with the news of the fomo that occurred

Many are just afraid with current condition without knowing the real scenario happen to the market. And if there's no huge news lik Luna tragic incident we might not see this price dip since for sure many will turn their attention on bitcoin because its starting to gain momentum of adoption especially when certain countries legalize it and many people use thia for their transactions.

Perhaps it hasn't really been established that Bitcoin is a safe haven? It is definitely a rising store of value and asset, but not really one to which you can safely run during times of a falling fiat or a crazy inflation or a crashing stock market or an invasion. As a matter of fact, the pattern has somehow pointed to Bitcoin's price moving more or less like the traditional market, although this is debatable. What is established is that Bitcoin will give us a good return in the long run. So I guess it's better to stick to HODLing despite the short-term price fluctuations.

Exactly, immediately the economy experiences some applied amount of unusual inflation, prices of things tend to go up immediately, the supply of coins becomes excessive that period and subsequently, excessive supply of it definitely and mostly leads to declination in the value of the Bitcoin, hence the bearishness occurs with immediate effect.

But in all, the point is, irrespective of the inflation experienced with Fiat, it hardly and rarely ever extends to Bitcoin which is one very good thing about Bitcoin.

The inflation crisis is fairly unique because Bitcoin hasn't been around long enough to truly test the waters of an inflation crisis. USD hasn't experienced this sort of inflation since the 1980's, and the European Union is having challenges of inflation of their own. We would need to wait a bit longer to truly see how the market reacts to Bitcoin and inflation because usually the inflation target is 2% annually and it's only post-COVID where most countries are having extreme challenges with inflation. If USD inflation spirals out of control more than it already has, I could see people using Bitcoin as a safe haven driving up the cost but the state of the global economy needs to be considered too. If people don't have money to invest, it's conceivable that crypto would less valuable in congruence to every other asset which price is in the gutter at the moment.

Also the feeling of losing something huge is one of the biggest reason of it since there are some people which is open minded on things they settle with them. For what's happening on outside world and bitcoin price still dumped then maybe we should wait and see on which price should we enter.

I also sell some of my bitcoin earnings to use it on personal matters, but I also make sure that I still havea huge balance to be save for future.

we were led to believe bitcoin was the best "safe haven" in times of economical uncertainty (like the current US recession) and war that eventually hit the world economy (russia-ukraine) because the market was yet to experience something of that magnitude, in a way we were gullible (?) and it was easy for some people to convince others that btc was going to go to the moon during a financial crisis, so the grand majority of the market set high expectations around btc if such turbulent events were to occur. Now we're going through those terrible events and it's ugly and obviously we weren't prepared to the punch in the face (financial crisis and a btc crash). Maybe those things about "btc safe haven" were true before the big investment firms, bankers and wall street entered the crypto market, but that ship sailed a long time ago and the btc price now mirrors traditional markets which are currently on a downtrend and you can be sure (sadly) that btc will follow that trend

maybe after the 2017 bull run, but prior to that literally nobody believed btc was tied to global or tradional markets.

Of course. Bitcoin has always been volatile, but I was surprised to see that there were no positive price movements even though Fiat currencies are experiencing high inflation rates right now. If only people relied on Bitcoin as a unit of account instead of Fiat, things would've been much better. I'm talking about spending 1 Bitcoin without the need to know its current value in Fiat. 1 Bitcoin = 1 Bitcoin after all, right? But the whole world goes around Fiat (the Fiat standard) so this is very unlikely to happen anytime soon.

If Bitcoin becomes the main unit of account, then it would serve as an alternative to the existing financial system. Some governments are adopting Bitcoin as legal tender, but that's not enough to "hyperbitcoinize" the world. I wouldn't worry about that as long as decentralization prevails. Just my opinion

I think when inflation increases then people really need cash so they sell coins, this is what makes crypto experience a decline, and I think this is normal, I also often sell crypto because I really need cash.

Well, Bitcoin should be about $60-70,000 if not for how its master was badly treated. I hope people understand.

I actually agree it  should be  so called safe haven in times of uncertainty. Price could still rise if you treat its master right. Why not get the master a sustable signature to earn some Bitcoin from his works and posts. Or don't you think it's right for him to also benefit from a future rise in price?

You were here during 2014, before many of us. I would believe that you among most of the people would have already understood Bitcoin's open-market induced volatility.

Plus what you're saying about "cannot serve as an alternative to the legacy financial system" is debatable. Bitcoin functions as well during bull markets, and bear markets, producing block after block without downtime. The Dark Markets continue, Bitcoin casinos continue, everything continues.

Bitcoin is inherently tied to conventional economy. Investment in any asset is bound to other economic assets. The fall in fiat economy and financial institution will also conveyed in bitcoin economy. Bitcoin is not the safest heaven. But it is always a good asset to keep

Interest rates play an important role today. and crypto in the bearish trend cycle. so This is the answer for your question. To suppress inflation, the Fed increased interest rates gradually starting last month. at the same time the crypto market is in a bear trend, so people are more interested in investing elsewhere than buying crypto which is clearly down.

The inflation rate is definitely rising in the long and midterm and during this time when the inflation rate is increasing the fiat and traditional money is losing its value against many other assets, so if you check the financial markets in long term you can easily understand how the price is raising. The bitcoin market is one of them and increasing its price in long term but during the time when the market is uptrend there are some events and possibilities to happen for the price correction is of them and besides that markets crash and price collapse is another thing but even after all these possibilities still if you check the char in long term you can see the true uptrend price movements.

Just as you are asking the question, I would like to ask the opposite. In terms of value and time that you are desiring for it, are you expecting things that don't go as expected? Some of the people above have also explained, which I find very clear, is BTC attractive and safe or not. I think it is not based on someone's judgment but your own opinion. What do you think? Personally, I still see the money I used to buy BTC always has many benefits, and even with recent developments, I also see some opportunities for myself. Although many people are panicking, I still have to admit that it is happening to me that everything is still very safe and I am grateful for this.

Crypto is inherently tied to FIAT and what's going on with the economy, it's not in its own bubble. In times of economic distress (inflation, food shortages, war, overblown housing prices et.) people tend to buckle down, and that means not investing in anything. And BTC is not even close to being a safe haven since it's volatility and its low utilisation in the real world is definitely something that will turn away people who want to escape the harsh economic situations. Nor is gold or anything for that matter. What most people are worried about is how they will pay their bills and food, and BTC can't really help with that (that much). So to sum it up, crypto rises when regular people start investing, but when the economic situation worsens, those people tend to stay on the sidelines and what crypto is left with are investors who have money for investing and are not worried about it having to be a solution for a specific economic problem they have. And as we see, those people are not enough.

Bitcoin isn't full proof investment right now. Most of the money which is into bitcoin economics is coming from the institutional investors and other whales. Obviously with the current market crash they need to compensate their real world assets and the only way to do is by selling off the bitcoin and using the fiat for the same.

I don't think there is any easier explanation to this rather than this. However, its also trendy these days, as the market goes down in real world, it hampers bitcoin drastically. It will come back as the economics settle in circulation from these big players.

Well, the answer is pretty simple.
For any assets to rise you don't need inflation or deflation, you need something else, and that's ....ta dam!!!! Money!
You need people to buy more bitcoin with more $ than the ones willing to sell for $ and on top of that you need to take care of a certain 30 million, a daily problem in blocks mined.  

Now, totally contrarian to the popular belief, when do people like to invest and risk money? When their job is secure, they have cheap food and rent and transportation, no crisis insight, or when they face unemployment, they spend half of their wage on basic necessities, they are afraid they might not afford food or even the rent when they are concern with the rising cost of raising a kid?
So, despite nearly everyone thinking we need a new ww3, economic crisis, famine, plague or other to see BTC rise to a new ATH, once you don't need a few million to do so but trillions, you need people with money and with no concern of losing that money at all, not a scared middle and lower class that throws 5$ a month on some altcoin.


Why not? Why would you expect bitcoin to go against this trend, just because it's an alternative?
A bicycle is an alternative to a car but it still has round wheels and you drive it on a street and you get fined for not having a light or a helmet!

Bitcoin is based on trust, the trust of being only 21 million, the trust of knowing there won't be more printed, the trust of knowing those are your coins, but at the same time, trust can be shattered, and this is what's happening now, some believe the value should be lower and their numbers offset the ones that think the opposite.
It's the perfect free market based on what people think and not what somebody else decided for them!
But not everybody likes a free market when it's going down!