Topic: WHAT MAKES BITCOIN A CDS ON THE FED (Read 159 times)

This is a common mistake that I've seen a couple of others make too. US dollar is not soaring at all, in fact it has been losing its value at a highest rate in 40 years. You can look at price of goods in US to see this dump.
The thing is that some other fiat currencies like EUR got dumped more than US dollar due to the special circumstances in Europe and how their economy is shrinking fast due to their energy crisis. This means their exchange rate against dollar goes down.

So logically bitcoin should go up against the dumping dollar. Which could explain the recent reversal and the subsequent rises.

Wrong. The bitcoin market can be manipulated but it can not be controlled.

One has to be an idiot to think cash that is losing its value fast is "king"!

Bitcoin is still young compared to traditional investment assets, and it is not easy to know whether it will immediately follow the path of Inflation by selling always when the inflation is high or not. Initially, Bitcoin was perceived as a safe-haven asset like Gold, but recent developments show that it is not, inflation affects it and makes it falls mostly (risk asset). But at times, it rises even with high inflation figures.

This makes me conclude that this effect doesn't correlate all the time in a short-term scope, perhaps, the long-term development has proven a bearish point during high inflation, but we still need more years to verify this to become a reality. Therefore, it is better to be careful and use technical analysis for final confirmation while investing in Bitcoin.

Lastly, I don't think Bitcoin has risen to the level of CDS (Credit Default Swap) concerning FED's dealings, we have to be realistic here.

Many speculators anticipated that the price of bitcoin would "moon" after the most recent consumer price index (CPI) print revealed an unexpected 9.1 percent (or 9.8 percent in cities). Instead, the price movement of bitcoin corresponded with other risky assets. Many people inquired why and threw the anticipated tantrum. "When moon? I thought BTC was a hedge against inflation,"

Remember that the network effect of bitcoin has only been around for 13 years, making it a robust asset. How resilient is it? While the dollar has continued to soar, recording new yearly highs against the British pound, euro, and Japanese yen year to date, it has become a wrecking ball against the majority of foreign currencies and risky assets.

Some ordinary investors are frustrated by Bitcoin's price movement. This is so because retail does not control the market. Institutional investors and "big money" control it. Institutions control the market, yet they are constrained by laws, rules, and policies. As a result, investors see bitcoin as a risky asset and turn away from it when inflation spikes (latest print: 9.1 percent), especially in an environment of high interest rates (also known as "quantitative tightening" or "QT"). According to many investors, the existing fiat system and traditional finance in general, "cash is king." When the DXY increases, institutions sell their risky assets (go risk-off) and buy cash (USD) and cash-flowing stocks.

The Fed's policy cannot be maintained. Both they and we are aware of this. By including a liability to their balance statements, they can't and won't stop printing (debt to be paid off by future generations). What is the remedy? The answer lies in bitcoin. Cash will still reign supreme in two months, but in two years it will revert to being trash. Bitcoin will continue to function in the interim, and investors (both retail and institutional) will recognize its value.

https://bitcoinmagazine.com/markets/why-bitcoin-is-a-cds-on-the-fed