If you have been watching the crypto currency market lately, then you may have noticed that the price has dropped in half. The reason for this is due to the fact that the value of the currency has fallen because of a number of reasons. Some of these include fears of a recession, Military conflict in Europe, and increased interest rates by Central Banks in order to combat inflation.
Bitcoin's value fell by more than half its value

The price of bitcoin has fallen by more than half in the last six months. Its value has plummeted to just over $26,000 and the crypto market has lost over $1 trillion.

This sell-off came amid a wider stock market downturn. The S&P 500 Index has sunk into bear territory and the Nasdaq has dropped 29 percent since mid-November.

The sell-off was largely fueled by a combination of rising interest rates, war in Ukraine, and the rise of inflation. In a broader sense, the financial collapse of 2008 triggered an international recession, which has continued to stoke fears about higher borrowing costs and more.

As of late, the crypto market has sunk from about $2.2 trillion at the end of 2021 to less than a quarter of its original valuation. There is no question that the cryptocurrency sector is undergoing a serious shake-up. However, this doesn't mean that investors should be hesitant to purchase cryptos. Rather, they should think of it like investing in a young venture.

Many believe that the crypto industry will undergo regulation and taxation. That may be the case, but until then, it's hard to call the market a bubble.

The price of bitcoin has risen remarkably over the past decade, hitting an all-time high of $64,000 in November. But the crypto space has now sunk to its lowest level in a year.
Central banks hiked interest rates to combat inflation

Central banks around the world are hiking interest rates to combat inflation. They are using a so-called "quantitative tightening" approach, which is designed to temper economic growth and keep prices stable. The European Central Bank (ECB), for example, is expected to hike interest rates again on October 23.

Inflation has reached record highs around the globe. As a result, the Federal Reserve has taken steps to tame the rate of price rises. Its aim is to keep the consumer price index within its two percent range.

Despite the Fed's actions, the price index remained at an eight percent level, or almost 40 years high. Excessive inflation erodes the value of private savings, and can eat into the profits of private companies. www.bestcryptoreferrals.com/best-5-crypto-tax-tools-reviews-2022-with-exclusive-referrals/

With the war in Ukraine affecting energy supplies, food and commodities, prices have skyrocketed. This has been partly caused by the pandemic, and supply chain issues.

ECB President Christine Lagarde has said that high inflation is a "major challenge." That is why the central bank will not hold back on the hike.

While raising interest rates may help tame inflation, it can also hurt the economy in other ways. For instance, making borrowing more expensive makes it harder for businesses and consumers to afford things, like mortgages or car loans. This can cause unemployment to rise, and can reduce the rate of growth.

Meanwhile, the Federal Reserve is aiming to keep long-term interest rates low. By raising the rate, the central bank hopes to make borrowing more costly, which will in turn slow down the economy.
Fears of an imminent recession

A number of cryptocurrencies have been hit hard this week, with most of them falling below $1,200. Among the worst performers were Polygon's MATIC token, which dropped 9.8%, and Ether, which fell 2.3% in the past 24 hours.

While cryptocurrencies have gained immense popularity since the Great Recession, many investors are now questioning their viability. One question to answer is, will these currencies help or hurt the economy?

The best answer to this question is still unclear. But a recent survey by the National Bureau of Economic Research (NBER) does provide some insight.

They found that the most important economic indicator is not the unemployment rate. Instead, it is the unemployment rate compared to pre-pandemic levels.

Another interesting measure is the number of jobs created, which rose 315,000 in August. However, this may not be enough to avoid the recession. The services sector grew at the slowest pace in two and a half years in October.

And while the United States has not yet entered a recession, it is certainly not out of the woods. According to Bloomberg, a number of economists are predicting one in the next 12 months.

Another key indicator is inflation. Although it is not a clear-cut indicator of a recession, the soaring cost of living is having a detrimental impact on consumers. In fact, a majority of Americans worry about high inflation, and almost 82% think it will have an adverse effect on them in the next six months.
Military conflict in Europe

In the first major conflict of the crypto era, Russia has invaded Ukraine. The resulting fallout has weighed on global financial markets throughout 2022. This is especially true in Central and South-Eastern Europe.

The impact of the war on the European economy is expected to be significant. It is likely to disrupt trade and weaken EU firms, leading to higher energy prices and inflation. Also, the end of the peace dividend could make rebalancing fiscal priorities challenging in the advanced economies.

Russia's invasion of Ukraine is an unmitigated disaster for global peace. Not only did it result in a surge in oil and gas prices, it also contributed to the global economic downturn. Since the invasion started in early February, travel stocks and casino operator Caesars Entertainment Inc. have been among the worst performers in the S&P 500.

But the effects of the war have been felt more broadly than many governments realize. In particular, the price of natural gas has risen to record highs. There is also an increase in food insecurity, which is causing a surge in inflation.

With prices on the rise, it's possible that more people will be forced into poverty. Moreover, the war's inflation will affect real private consumption in the European Union by about 1.1%. This will be particularly painful in countries with a high poverty risk.

Despite these consequences, many countries are reevaluating their defense needs. Finland, for example, is beefing up its arsenal. During the past 30 years, its armed forces have looked old-fashioned.
Industry leaders fear fallout will provide ammunition for powerful skeptics to crack down on industry

While no one has been able to prove that the coronavirus was the cause of the recent collapse of the news media industry, the associated economic pain has certainly ratcheted up the ante in the media world. For instance, there was an unconfirmed report that at least 30 newspapers folded or merged in the first two months of the year. A few months ago, at least four dozen were still around. There are also reports of more than a few sleazy proprietors on the loose.

In the news space, there is a tidal wave of consolidation taking place, most notably, the New York Post. This tidal wave of consolidation is the largest since the financial crisis of the mid-2000s. It's also a tidal wave of elitists vying for the same throne, which translates to a few thugs and shady operators. Some of the big boys of journalism have been known to make the mistake of passing the buck. These predators may be out of sight but out of mind, if they have not already.

Among them is the burgeoning fad of survivalism, ie, the ability to prepare for the inevitable and unavoidable apocalypse, aka the zombie apocalypse. It's a tall order to fill, but it's a tall order that's only exacerbated by the growing gulf between the wealthy and the rest of us. The biggest challenge is figuring out where to start and where to steer.
Recovery

If you've been following the crypto world, you probably already know that it's been a rough few months. Coins such as Bitcoin, ethereum, and the stablecoin Tether are all down by more than 70 percent from their all-time highs.

The recent crash has spooked a lot of investors. It also has raised doubts about the future of the industry. However, there's still plenty of excitement and interest in the tech.

Although there are no circuit breakers to protect the market, rapid drops can cause a serious setback. Investors are moving money out of risky bets into safer alternatives. That is not good for the industry, which will face a loss of trust and confidence in the long term.

"Blue chip" cryptocurrencies, such as bitcoin and ethereum, are likely to recover faster than others. As a result, you may want to invest in one of these if you're in the market.

A recent crypto crash has caused investors to ask whether a recovery is in the cards. Some of the most prominent cryptocurrencies are likely to recoup their losses, but a complete recovery will take longer.

As a rule of thumb, coins in the top 500 by market cap will have the most likely chance of positive returns. However, if you're looking to invest in the short term, you're better off with a treasury bond.

Earlier this year, the largest crypto exchange in the world, FTX, filed for bankruptcy. This prompted other exchanges to do the same.