How does inflation affect crypto?

[Afony]

So the market will continue to fall or it will stop at this point, the crisis is very difficult to understand how the crisis affects the product. But despite the fact that there is a crisis, it reduces the price of some products, and raises others.

[Speaker]

As long as there is uncertainty in geopolitics and in the stock market, it is unlikely that we will be able to see a frenzied growth

[Anrate]

Cryptocurrency is not the same as real money or cash, which circulates around the world as legal currencies of various states. Instead, bitcoin is digital and worldwide, and its value is entirely determined by the demand and supply of certain coins. As a result, it simply means that cryptocurrencies do not respond to inflationary pressures in the same way that a foreign currency would. Many bitcoin supporters think that it is a counter-inflationary asset. As the value of your currency falls, the value of your cryptocurrency rises.

[Speaker]

Cryptocurrency is not the same as real money or cash, which circulates around the world as legal currencies of various states. Instead, bitcoin is digital and worldwide, and its value is entirely determined by the demand and supply of certain coins. As a result, it simply means that cryptocurrencies do not respond to inflationary pressures in the same way that a foreign currency would. Many bitcoin supporters think that it is a counter-inflationary asset. As the value of your currency falls, the value of your cryptocurrency rises.

But the cryptocurrency also reacts by falling when the stock market falls.

[Afony]

How inflation can interfere with the cryptocurrency is unclear, if only the dollar itself collapses then only something will happen. The global crisis may affect the cryptocurrency as it has already been.

[ashraf786100]

In times of crisis, everything should increase rather than decrease, as is the case in all developed nations, but this is not the case with cryptocurrencies. Why the market is starting to expand for some products is unfathomable for everything given the crisis condition.

[Jaephoenix]

Its simple. Inflation reduces less cash in the pocket and thus less cash to invest. One method of carving inflation is if the Fed raises interest rate, the stock market tends to decline. This is because bank saving interest will be more appealing, since it's still risk free!

[Citysatoshi]

In my opinion crypto is a hedg against inflation, even as many experts has also considered bitcoin as a hedge. The effects of inflation on crypto is not known or are there facts to established by crypto experts/analysts that inflation affect crypto.  The interest rate constant rise by the FED has no direct effect on crypto but on fiat (Dallas), though certain people believed that FED interest hike affected crypto indirectly through trading but I think that this affect may not be directly.

[Ghozrd]

All countries are currently experiencing inflation due to rising energy prices, some people will sell their crypto assets when they no longer have fiat money.
Energy, oil and gas prices are likely to rise, and crypto prices fall due to the impact.

[Speaker]

All countries are currently experiencing inflation due to rising energy prices, some people will sell their crypto assets when they no longer have fiat money.
Energy, oil and gas prices are likely to rise, and crypto prices fall due to the impact.

a certain imbalance is observed. It will take a lot of time to put it all in order.