The macro economy is currently in a severe recession, while inflation is also falling, which means that the price level is falling overall, which is deflation. This situation has an impact on various investments, including cryptocurrencies. Cryptocurrencies have always been considered a safe haven asset, and their value is not affected by government intervention or inflation rates.
However, the current instability in the macroeconomic environment is affecting the cryptocurrency market, causing cryptocurrency prices to fall. One of the main reasons for this situation is that most people are facing economic instability and their consumption and investment decisions have become more conservative.
When the amount of money in the market decreases, the stock market will definitely spread to cryptocurrencies. Currently, the positive correlation between cryptocurrencies and Nasdaq is still very strong.
It only took a few days for the market to fall from 2100 to 1800. The volatility is also very high.
The safest way is to wait for the next bottom-fishing. It is really possible to see ETH at 1,300 and BTC below 20,000. The real economy is really not doing well right now. Just look at domestic exports and you will know. There will definitely be a big correction, and cash will be king at that time.
