No offence, but it seems you are listing a lot of relatively isolated events to support the argument of Bitcoin's dumping -77.5% from it's highs in 2022. The irony being that in 2014 as well as 2018 Bitcoin dropped -83% from it's highs, so in reality Bitcoin has performed better (so far) within the 2022 bear market than in previous ones, given Bitcoin's bear markets remain part of a 4-year cycle. My point is if inflation had arrived in 2021 during Bitcoin's bull market,
Fair point. We should always see all the factors that can affect the market. The ones I listed are mostly in the same category affecting the economy but of course we should consider the bitcoin specific events like the 4-year cycles too.
I'm sure most (including myself) would of wrongly claimed that inflation is good for Bitcoin, while now many still hold the belief that inflation is bad for Bitcoin,
My theory is that inflation is still good for bitcoin but there is a difference between inflation and recession and inflation with recession.
What we have is the last one meaning both inflation and recession at the same time.
- During inflation people still have their jobs even though price of every thing is going up so they still earn money as before and can can think about investing it and hedging against inflation.
- But during recession unemployment grows and people are earning less money so their main concern is their cost of living not investment which is why they liquidate their assets more during a recession, that is selling bitcoin among other things causing the dump.
What we have or are heading towards is inflation with recession specially when they keep increasing interest rates (that causes recession) to lower inflation that is already higher but it doesn't work well enough.