Topic: The US CPI has strong influence on Bitcoin (a reason for the current rise) (Read 317 times)

I think the CPI is a big changer, not just in crypto, but the effect it has on other traditional markets. And can see they were all affecting by the news, everyone goes down, and we can say that crypto market is the most impacted by the news so I will say it has influence all over so much so in our market. So we will see again next month, and hopefully it will not be as felt as we had this month because we are enjoying a good recovery already and suddendly the news change it in snap wiping out the market.

No one is saying only CPI is affecting the price of Bitcoin, how could anyone say that? One thing I've noticed is that you guys are always moving away from the subject matter when you reply. This topic was on the effect of inflation on Bitcoin, so should I drag others to it? Why? Inflation can never be the only factor affecting Bitcoin but I can't include that in the inflation discussion.

Everyone gives reasons for the price movement but hardly wonder why it happens when the one who controls the price says it will happen.
I guess we could choose a time period when almost everyone expects the price to go in a particular direction so that the one who controls the price makes it go opposite direction.

Also whether only US CPI will affect the bitcoin price or other country's CPI would also effect the bitcoin price that is also a major question.

Global inflation has proven to have a strong effect on Bitcoin these days and the US inflation reports are taking the lead. It has the strongest influence on Bitcoin whether it is a positive or negative report and it explains the recent soar in the price of the crypto. The Federal Bureau of Labor Statistics reported a lower CPI and Core CPI on Wednesday at 0.0% and 0.3% respectively, which made Bitcoin rose and might make it gain strength till the end of August as it has suggested an end or temporary halt to the ever-soaring inflation in the US.





Furthermore, the CPI, which is the change in the price of the goods and services purchased in the US and the Core CPI, which is almost the same as CPI, except that the prices of foods and energy are excluded are both good inflation gauges and have been on the bullish path since the beginning of this year. But Wednesday's reports caught investors by surprise and excites the Bitcoin market. The data would have a lasting bullish effect on Bitcoin.





Keynotes: High inflation reports were the major reason Bitcoin sold this year, so low inflation reports would push it up. I suggest a bullish trend for Bitcoin till the end of August. Also, continue to buy the crypto in September if the report of the Federal Bureau of Labor Statistics is negative for the CPI and Core CPI in the month. I will update the values in September.


Good luck to you!

It has influence over the markets in general; it's not exclusive to bitcoin only.

Maybe there is? Because when there is inflation, the prices of the goods are going up and people are in need of money so they will use the money that they have in btc. Terra luna is not the same with btc and if it collapse then people shouldn't worry but about those big companies you mentioned that collapsed, maybe that scares them a little since those companies support several cryptos.

It's true that inflation is not the only basis if the price of the btc will collapse or not but there are other factors as well that is responsible for it. We also have that four year cycle which people based their predictions and says that the market will still be the same for the next couple of years.

People do not realize that investors are investors and they will do whatever is the best for them and unfortunately they make changes that would be quite difficult for them in the long run by thinking stock investors or forex investors are different from bitcoin investors.

People are good at finding, or thinking they've found, patterns in all sorts of random ways. However a few months worth of selective data does not amount to very much proof of evidence, many examples spanning years would offer a much better hypothesis.

There's no direct connection between the inflation going up and the panic selling on the BTC market.
The BTC panic selling was caused mostly by the Terra/Luna collapse and the big companies like Celsius, Three Arrows Capital, Voyager going bankrupt. All the FUD around the war in Ukraine, global inflation/stagflation and an upcoming recession also had some impact over the Bitcoin panic selling.
OP can't explain the Bitcoin price movements with the US inflation alone. We can't draw conclusions about the future of the BTC market based on a US inflation report. The stagnant crypto market might continue until the end of 2022 and even during the entire 2023.

It has influence over the markets in general; it's not exclusive to bitcoin only. CPI and inflation rates can simply influence the decisions of investors in general; if they want to risk on or risk off. Bitcoin (at least currently) is simply a higher beta version of the Nasdaq.

Global inflation has proven to have a strong effect on Bitcoin these days and the US inflation reports are taking the lead. It has the strongest influence on Bitcoin whether it is a positive or negative report and it explains the recent soar in the price of the crypto. The Federal Bureau of Labor Statistics reported a lower CPI and Core CPI on Wednesday at 0.0% and 0.3% respectively, which made Bitcoin rose and might make it gain strength till the end of August as it has suggested an end or temporary halt to the ever-soaring inflation in the US.





Furthermore, the CPI, which is the change in the price of the goods and services purchased in the US and the Core CPI, which is almost the same as CPI, except that the prices of foods and energy are excluded are both good inflation gauges and have been on the bullish path since the beginning of this year. But Wednesday's reports caught investors by surprise and excites the Bitcoin market. The data would have a lasting bullish effect on Bitcoin.





Keynotes: High inflation reports were the major reason Bitcoin sold this year, so low inflation reports would push it up. I suggest a bullish trend for Bitcoin till the end of August. Also, continue to buy the crypto in September if the report of the Federal Bureau of Labor Statistics is negative for the CPI and Core CPI in the month. I will update the values in September.


Good luck to you!

You're making a causal association without any long term data to back up your claims.

well, bitcoin didn't disappoint:

It has influence over the markets in general; it's not exclusive to bitcoin only. CPI and inflation rates can simply influence the decisions of investors in general; if they want to risk on or risk off. Bitcoin (at least currently) is simply a higher beta version of the Nasdaq.

You're attributing small, single digit rises, in Bitcoin's price to be associated with inflation, why?

Bitcoin is a part of economy and it is affected by what happens to the economy as a whole, inflation is only one many factor.

Global inflation has proven to have a strong effect on Bitcoin.

Meaning inflation did not affect Bitcoin?

There's no direct connection between the inflation going up and the panic selling on the BTC market.

We don't have any experts on the market here, are you an expert in the market?
Bitcoin has dropped from $69k and the previous low of 17.6k. With the recent news, the market has had a bit of a good turn with the bitcoin rally. Currently, bitcoin moving sideways around $23k, bitcoin is still losing more than 60% of its value against ATH and you call this a soar? I think you are the one who should try to learn more.

I disagree with your opinion.
Because the effect of rising inflation on bitcoin should be positive where people buy the only hedge against inflation which is bitcoin. But we saw how when inflation went up a lot of them panic sold their bitcoins.

The reaction was also not to the inflation rate but mostly to other markets (like US stock market) that crashed hard.