How does inflation affect crypto?

[Astra]

Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?

Do you dare to buy and invest when inflation occurs? Inflation makes the price of goods rise from the normal price. people will prefer to save and use money as well as possible

Inflation primarily means a fall in the purchasing power of citizens. And since people still need to make certain expenses for food, clothing and other expenses, in the face of increased prices, potential investors cannot afford to buy cryptocurrency. Demand for it decreases and the cryptocurrency market falls.

[Daniel_H938]

Thanks for information it was really helpful

[Fenix]

Previously, there was a general opinion that inflation, especially if it affects all or most states, should contribute to the price increase of the cryptocurrency. But this year, we do not observe such an effect at all, despite the fact that the economic decline in most countries is very significant. Apparently, here various opposite processes influence in a complex, therefore it is impossible to unequivocally count only on a certain price effect.

[pacar_tiri]

Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?

inflation always make people suffering, it's because of the value of money will decrease, and price of the price of goods goes up purchasing power goes down.
That make bad economic.  Hopefully it will end soon.
I think It will affect to crypto, because

[Evgenklm]

I also used to think that inflation does not affect cryptocurrency, but over time I realized that, in principle, cryptocurrency is to some extent an analogue of those fiat money that are subject to inflation.

[mohdelayo]

I also used to think that inflation does not affect cryptocurrency, but over time I realized that, in principle, cryptocurrency is to some extent an analogue of those fiat money that are subject to inflation.

It actually does, you know what inflation causes is a drastic decline in purchasing power of the populace, thus those with cryptocurrency investment will want to liquidate their holdings in order to cuisine the effects of inflation.

[pelana vreo]

when a country's economic system is no longer running well, there will be problems such as inflation, in 1998 many countries were affected by that situation, food crises were everywhere and fiat currency had no guarantees, therein lies the weakness of fiat.

Unlike Crypto, crypto has value because of technology, but some regulations make the price of crypto go down, this happens because some crypto exchanges want to list coins on the exchange and need permission from the government, this is the problem, inflation doesn't actually affect crypto, but investors are afraid of losing or losses due to interest rate regulations issued by The FED can change the situation on the stock market as well

[Callisto]

I think when the population gets poorer, they start to distrust their government and immediately start looking for additional means of earning, from this everyone goes into the crypto world, thanks to this new investors and projects appear, everything starts to grow at once, I watch it all the time, the collapse of bitcoin thanks to whales don't count here if that.

[gunhell16]

Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?

Inflation that happens in every country does not affect cryptocurrency or bitcoin. I witnessed that, way back in 2016 up to now. Because at that time there was also a problem with inflation, but even because of cryptocurrency people had the opportunity to have additional income, and the others in these years if you compare the price then like ETH, Dogecoin, and other cryptocurrencies are far different in their price, as commodities are very expensive today in reality.

This means that it is clear that the inflation that is happening all over the world today has nothing to do with the falling prices of altcoins in the market today...

[Speaker]

The crypto market is influenced by the behavior of cyclical and risky assets, which in turn are affected by the situation in geopolitics and the stock market

[nakmantu99]

Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?

Of course, inflation will affect to crypto market because demand will decrease.
I think investors will hold their money to invest in crypto, but it's just temporary.
Several investors will hold and choose potential crypto

[doc]

For now, I don't think the crypto condition because the inflation but I think it is just cyclus.
Yeah , we will see long bearish until bitcoin halving 2024.
So keep buy more and hold your potential coins.

[de_prof]

For now, I don't think the crypto condition because the inflation but I think it is just cyclus.
Yeah , we will see long bearish until bitcoin halving 2024.
So keep buy more and hold your potential coins.

Yeah for the current  crypto condition because bearish season, but I think  inflation effect too.
Inflation is always having bad effect for economic , industry and also crypto currency.
So, perhaps we can hold and wait.

[bayiajaib]

although many people said  current crypto condition because of bearish season,  but I think inflation also has effect for this condition.
We must be careful, almost all of economic suffering now.

[Master107]

Actual world could affect crypto. If the world is at peace and plentiful crypto will be affected too. People will react base on what the present scenarios of their financial status and world status. Only the risk taker with huge money can stand and grab the opportunity to buy more during dump. The low level will be pressure and will sell tokens during dump. So inflation is also for crypto due to actual world scenario and manipulation.