The alarm of economic stagflation has been sounded! Will Bitcoin collapse?

Bitcoin and cryptocurrency under the cloud of stagflation: an unknown storm

Recently, the economic data of the United States has shown a disturbing trend - stagflation. This unfamiliar economic term has suddenly become a hot topic. You may ask, what does this have to do with ordinary people like us? What does it have to do with our beloved Bitcoin and cryptocurrency market? Don't worry, let me tell you slowly.

First of all, stagflation is not a good thing. Simply put, it is economic growth stagnation, but prices continue to rise. It's like your salary has not increased, but buying things is getting more and more expensive. This situation will be a headache for anyone who encounters it.

Now, the United States is facing such a problem. The GDP data is not good, showing weak economic growth; at the same time, inflation is soaring like a wild horse. This puts the Federal Reserve in a dilemma: cutting interest rates to stimulate the economy is afraid of more severe inflation; raising interest rates to curb inflation is also afraid that the economy can't bear it. This delicate balance is really a sweat.

So, what does all this have to do with Bitcoin? It's a big deal!

Bitcoin and other cryptocurrencies have become the new favorites in the investment field in recent years. But don't forget that they are also a type of asset and will be affected by the macroeconomic environment. Just like the stock market will suffer during stagflation, the cryptocurrency market may also face huge selling pressure.

You may say: "Bitcoin is global, how can it be affected by the US economy?" That's right, Bitcoin is indeed global. But don't forget that the US economy is the leader of the global economy, and its economic conditions will directly affect the global investment environment and market sentiment. Therefore, when there are problems in the US economy, global investors will become cautious, and the Bitcoin market is no exception.

What's more, the upcoming FOMC meeting is like a sword hanging over the heads of investors. This meeting will determine the direction of the Federal Reserve's monetary policy, which will in turn affect the trend of the global financial market and the cryptocurrency market. You say, can this not make people nervous?

So, stagflation is like an unknown storm, which may bring a huge impact to the Bitcoin and cryptocurrency markets.But when will this storm come? How powerful will it be? No one can tell.

In this era of information explosion, we need to keep a cool head and learn to filter out valuable information from the vast amount of information. Only in this way can we be invincible in this unknown storm.