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. (repost)

This is a repost of my previous post which got deleted after 2 hours because it was apparently off-topic. This one right now is more on-topic crypto-related with a few fixes and also answers to the questions I've got in the last post.

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The annual inflation rate accelerated to 8.6 % in May of 2022. Highest since December 1981.

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 the economy as a whole. There won't be extra money to buy crypto, monkey jpegs, and other inessentials.

Unfortunately, cryptocurrency is not moving independently and it is somewhat correlated with stock market. We treat crypto the same way we treat stocks, so prices tend to trend the same.

People are selling their investments/cryptocurrencies 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 events that are ongoing right now around the globe.

Whether global recession happens or not, you should be prepared for it. I don't like getting attached to specific dates, because there could be other factors that influence the timing of it, most likely happening in 2022/23.

Even though crypto has been struggling throughout the year, it doesn't mean we're at the bottom, we might just witness the true crypto crash.

I am not advising anyone to sell their cryptocurrency. It's a reminder that the global recession and consequently the crypto crash which were long-awaited are still in front of us and it will get worse before it gets better.

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A lot of people here say that global recession is time to accumulate cryptocurrency. I agree with you, but throughout the recession, some people have to worry about making it day to day.

Crypto in a wallet does not help you if you go to sleep starving.

tl;dr

The annual inflation rate accelerated to 8.6 % in May of 2022. Highest since December 1981. People are selling their investments/cryptocurrencies and transferring them back into fiat, just so they can afford everyday needs. Even though crypto has been struggling throughout the year, it doesn't mean we're at the bottom, we might just witness the true crypto crash. If it does happen, be prepared and don't overinvest.