Inflation reaches 8.6%, the highest U.S has seen in 40 years. Global recession is around the corner and so might be the real crypto crash.

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The annual inflation rate accelerated to 8.6 % in May of 2022. Highest since December 1981. Food costs surged 10.1%, the first increase of 10% or more since March 1981.

chart of inflation in the last 25 years

https://preview.redd.it/v3tsytevns491.png?width=722&format=png&auto=webp&s=42d62f9cfa361ce332e46dae3357454f7d0775d2

If global recession does happen, that means we will see crypto market drop significantly more. And I am not talking just about the crypto market, but economy as a whole. There won’t be extra money to buy crypto, stocks and other stuff some people were planning on buying.

We could say that S&P 500 is commonly used to benchmark for determining the state of overall economy. Why does that matter? Bitcoin’s correlation to S&P 500 is 0.9, this is almost perfect correlation. (1 is considered perfect correlation and -1 the complete opposite), simply put bitcoin follows S&P 500 and if whole economy drops so will bitcoin and usually, then the alts follow and on and on.

Whatever happens, you should be prepared. I am not a fan of exact dates that crash can happen. But I am confident that the true crash will happen sometime in 2022.

People are selling their investments and transferring them back into fiat, just so they can afford everyday needs. Rent is higher. Gas prices are way up. Everything is rising. Not to mention other stuff that is ongoing right now.

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fyi : s&p500 is following the same pattern as in 2008 when the financial crisis happend, and its not just housing market this time, it’s everything; just info, I’m not much of a fan of TA myself. But thought I’d put it out and maybe some people who like technical analysis can do their research

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tl;dr : Inflation reached 8.6% highest the U.S has seen in last 40 years. True crash might just be around the corner. Don’t get attached to exact dates, but I am confident that it’s happening sometime this year. If everything drops, so will crypto. If it does happen, be prepared and don’t overinvest.

submitted by /u/frellies1
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