The data regarding inflation attacking not only the United States but also Europe shocks the traditional financial market and, therefore, the digital one; they have begun to see setbacks in the indices and cryptocurrencies while a dollar becomes more robust, which puts cryptocurrency investors on Immediate Edge .
This week is an intense week for the financial market, where it could even be in the presence of the issuance of new economic and financial measures by the Fed; just as this could happen, investors are used to the digital market being a volatile, explosive and to some extent irrational sector.
Bitcoin has experienced a decrease of more than 5% in just 15 minutes, a period and a shift that for many was abrupt but usual in a bearish phase. Unfortunately, risks are the order of the day.
Progressive inflation keeps Bitcoin down.
Accumulated inflation to July, which represents 9.1%, has caused many of the financial markets, including the cryptographic one, to enter a state of panic; it is an atypical situation that was not expected to occur, but it is that the global scenario at the economic level it lends.
The technology companies that own shares in the stock market and futures markets are also declining faster than digital currencies, although in a lower percentage.
Scenarios that could be considered nothing positive since the central banks are in a constant fight against inflation, and the only measure they seem to think can contribute to improving the situation is the increase in interest rates.
These measures do less flow of current assets to speculate or invest in cryptocurrencies and other types of financial actions.
The increase in prices of various goods and services makes the active crypto market risk since it has tried to make it look like this, where the fact that Bitcoin could be the solution in the face of such high inflation at a global level has been underestimated world.
Many investors, users, and supporters of Bitcoin and cryptocurrencies often suggest that these types of assets are becoming more and more necessary; they are not simply a solution to inflation but particular economies.
The Extreme Pressure to Regulate Bitcoin
In the last two years, it could be said that digital currencies have acquired a significant position among corporations and private investors, who have considered Bitcoin a refuge for savings and new capital.
This increase in the use of digital assets has led financial institutions, central banks, and governments, in general, to be in a constant struggle to create a bill that regulates and controls cryptocurrencies, something that has undoubtedly affected the valuation of Bitcoin.
The effect generated at the global economic level could be compared to the domino effect after the publication of the CPI, where the dollar and the Euro were also affected, without imagining that they would be on par after 20 years.
The bills are based on the excessive amount of money mobilized through transactions with cryptocurrencies. Despite the market’s rupture, it continues to increase, which does not please governments.
China approved despite its bans.
The industrial power worldwide has shown a positive vision regarding cryptocurrencies and the blockchain environment, where a series of aspects directly related to the crypto ecosystem is considered.
The position of this Asian country is known worldwide in terms of the prohibitions that exist within the territory about the use and management of cryptocurrencies. However, in its current digital economy plan, they have included tokens, NFT, the Metaverse, and the Web3.
It could be considered a positive aspect amid so many economic and financial turbulences that have harmed the value of Bitcoin. Still, in a short time, we will see the recovery of this digital market above many other assets.
Conclusion
The exploration of new markets is a curiosity that is reaching more people and that, of course, does not go unnoticed; the digital market may be currently being exploited by short-term traders and whales who intend to acquire the most considerable amount of assets at the waiting for the distribution phase in which the benefits are enormous.
Crises lead to opportunities, and in Bitcoin-Prime trading system, you will find the one that suits you.