Important report comes out that inflation is pretty bad (USD)..
Bitcoin dumps off a cliff..
This is the exact opposite of what Bitcoin is supposed to do..
Has Bitcoin strayed too far from its purpose?
It really is counterintuitive to see people sell bitcoins and other crypto currencies when inflation is on the rise. I am still not sure if investors are afraid of the high inflation or general economic outlook. And what are these investors switching their money from cryptos into? Stocks are also down and it doesn't feel like investors are heavily buying them. Holding cash seems like the worst idea you could do right now. With inflation rates above 10% you are losing so much purchasing power of your cash. The only rational to hold all that cash is if you expect another crash and things too get much worse. I am not so negative and think it's much better to stay invested and sit out this bear market. As long as we are not selling we are not realising any losses and will profit as soon as prices start to rise again.