Cryptocurrency, News

Rising Inflation also Hits Crypto Market

Inflation is a hard economic truth for every nation out there; it doesn’t matter how strong the economy of a country is; they might have had to deal with inflation either in the past or would do so in the upcoming future. At the moment when the whole world is recovering from the horrible effects of COVID-19 and slowly building its financial system to make it whole again and operate at full capacity, multiple nations at the moment have to deal with inflation.

It was first believed that when the conventional markets of the world are going down, such as the forex or stock market, the crypto market would prove to be a safe haven for inflation. Because investors can stomp their money into the crypto market investing in cryptocurrencies such as Bitcoin or Ether and would thus outrun the horrible and dreadful implications of inflation. But that doesn’t seem to be the case because, at the moment, the whole crypto market seems to be going down.

Bitcoin is Trading Below $60k

Red has become a prominent color across the board, and it is not just the Bitcoin that is taking the toll, but every other cryptocurrency is in it as well. Bitcoin is fairly close to dropping all the way back to $50K as the crypto tries its best to hold at above $55K. It has been said multiple times that Bitcoin has been a hedge against inflation since it began trading back in 2009, but it has never been tested or simulated to verify if this is the case.

Due to this complicated mess and not knowing whether Bitcoin is a verified hedge against inflation, many investors and companies try to flock their investment into the digital asset in hopes of the crypto market taking a positive turn and doubling or tripling the return on investment. But when corrections start hitting, and the price of crypto, especially Bitcoin, is forced to take a step back, the same people are seen taking their money out and selling their assets as if they were hot flames in their lap and they would do anything to get rid of these. Inflation is potentially a problem not only for the conventional markets and Fiat currencies but also the crypto market as well, and people need to understand this.

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