Topic: The US CPI has strong influence on Bitcoin (a reason for the current rise) - page 2. (Read 317 times)

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.

Price has been going up and trying to reach $25k and break it for the past months, it has been failing and coming down to try again. It is not soaring yet as long as it hasn't broken that resistance. You don't seem to have looked at bitcoin charts in the history and at times like this when a sideways market is in full effect. Which is why you try to find unrelated reasons for a very normal and common market behavior.

It's clear you are not a market expert and impatient. What would you call the bullish spike seen from the bottom of yesterday after the news? And did I not mention Wednesday and the recent spike in my post? Please read well before you reply to posts. So you are telling me that Bitcoin is a risk-off market? Then you must be joking. In case you don't know, Bitcoin is a risk-on market and high inflation suppresses it like other risk appetite markets. The soaring of the crypto after lower inflation data of the US yesterday should have proven a common correlation to you. Try to learn.

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.

There has not been any "soar in price" for the past 2 months. You are confusing sideways market with price soaring.

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!