Cryptocurrency prices undermined by fears of recession. Tokens, which are supposed to reduce volatility, are collapsing.
Crypto investors no longer know where to turn.
Crypto pricing is now correlated with the stock market, which means that, as the saying goes, when the stock market coughs, digital-currency prices catch pneumonia.
This has persisted this year due to fears of recession. That concern in turn has been fueled by inflation, which is at its highest in 40 years, and by the continuing disruption of supply chains, most recently made worse as covid-19 resurged in China.
Investors have been liquidating assets, and almost no asset class is spared. But apart from this pessimistic overall picture, the crypto market also suffers from problems inherent in certain projects, such as stablecoins.
Luc Olinga | The Street Investing