Quote from: DonaldCryptoTalk1 on Today at 10:43:09 AM

Quote from: kotajikikox on August 19, 2025, 11:28:05 AM

The biggest cryptocurrencies in the world dipped sharply Thursday after the latest inflation data showed wholesale prices are rising much faster than expected. The price of Bitcoin is down 3.8% on the day ($117,900), Ethereum is down 4% ($4,535), and Ripple is down 6.1% ($3.07) according to CoinMarketCap.

Crypto prices are responding to the Producer Price Index (PPI) for July, which measures the average change in prices from U.S. manufacturers and service providers. It rose by 0.9%, according to the Bureau of Labor Statistics, the largest monthly increase since March 2022, according to the Wall Street Journal.

Why is it that bitcoin and other cryptocurrencies have declined in response to the inflation rate rising? Should the response be the other way around? Bitcoin is anti inflationary so it makes more sense to use bitcoin to protect the value of your bitcoin. So, why was the response like this? What do you think so?

Yeah, you’d think higher inflation would push people toward Bitcoin since it’s anti-inflationary, but markets don’t always move that clean. In the short term, Bitcoin still trades like a risk asset. When inflation data comes in hot, investors start worrying the Fed will hike rates or keep them high, and that usually means risk-off across stocks and crypto.

Long term though, you’re right, Bitcoin was built exactly for times like this. The short-term traders dump on headlines, but the real hedge value of Bitcoin shows up over years, not days. That’s why hodlers don’t stress these dips.

HODLERs know better than these bigger whales and those who think BTC is as risky as buying any other crypto: because we know for a fact that BTC is the best and will surpass anything in its way toward the adoption, one way or another.