- These Top Crypto OGs Love to Hang Out at Parties - September 16, 2022
- Crypto Twitter is Raging Bulls over Name-calling - September 15, 2022
- Stop Putting “Feminism” Labels on the Demand for Internet Privacy in Web3 verse - September 14, 2022
Bitcoin is majorly suffering due to the inflation that is plaguing international markets
The crypto market has had a rocky start since the beginning of 2022. A few weeks ago, a Google search revealed that phrases like ‘Bitcoin is dead’ and ‘Bitcoin dead’ were some of the most trending search queries on the internet. The last two months have been quite brutal for BTC. After being hit by Terra’s implosion, most investors chose to leave the crypto market after selling off their Bitcoin investments. Currently, at the time of writing this article, the Bitcoin price is revolving around the US$19k mark. Earlier, key indicators had predicted that BTC should be holding on to its US$21k resistance and try to move upwards to tackle its 200-WMA. But instead, BTC fell and took down major cryptocurrencies like Ethereum and Solana it. But it is not just because cryptocurrencies are losing their market relevance. In fact, the impending US inflation is also one of the major reasons why the Bitcoin price is plummeting. The new reports revealed by the Consumer Price Index (CPI) state that US inflation has jumped to 9.1%, a record high in 4 decades, which in turn is now adversely affecting the Bitcoin price.
The rate of inflation analyzed by the US’s CPI states that the economic downturn surged by over 9.1% in June. The rate of inflation kept accelerating from May’s 8.6% resulting in a 40-year high. Quite shortly after the report was released, the price of Bitcoin fell by almost 4.2%. Financial experts are afraid that this might eventually lead the FEDs into rolling out tighter monetary regulations to reduce the effects of inflation. Financial analysts believe that the crypto market is intensely suffering due to economic issues because of the growing correlation between cryptocurrencies and financial markets. And since this inflation is going to persist for quite a number of months, the imminent economic dangers will continue to jeopardize the dominance of cryptocurrencies in the economic and financial markets, as it might also harm crypto buyers who are not smart about their investments and continue to put their money on the wrong digital assets.
Should you invest in Bitcoin right now?
Quite similar to speculative investments, buying Bitcoin is also intensely risky, especially at this stage. Since its inception, Bitcoin was the first digital asset that introduced the concept and ecosystem of cryptocurrencies to us. It was also the first cryptocurrency that was adopted by a nation as a legal tender. The impact of global downturns has adversely impacted the crypto market, but Bitcoin is still the largest cryptocurrency in the market. Currently, experts believe that it is quite impossible for other altcoins to overtake Bitcoin. Even though Ethereum’s performance after the launch of ETH 2.0 will dictate several price actions in the market. But until then Bitcoin will continue to sit at the top of the crypto pyramid.
There is a certain reason why more investors wish to experience investing in Bitcoin. For real-world use cases, its yields exceed any other investment asset. However, presently, BTC’s volatility is a major concern, which will prevail until inflation persists.