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<h2 id="header-0">The fluctuation of prices in the cryptocurrency market is determined by the macroeconomic environment.</h2>The Federal Reserve&#39;s every action is being watched by cryptocurrency traders and investors. Neel Kashkari, President and CEO of the Minnesota Fed, has given speculators more reasons to be concerned. Kashkari recently asserted that the current economic situation has many similarities to stagflation. Like the rest of the economy, the cryptocurrency market might suffer greatly during a stagflation.Why Recession and Inflation Can Be Worse Than StagflationThe macroeconomic environment right now is negative for the crypto market. <a href="https://www.coingabbar.com/en/crypto-dictionary/cryptocurrency" rel="noopener noreferrer nofollow">Cryptocurrency</a> is now moving slowly and has a significant correlation to the general market. The crypto market has experienced a significant selloff as a result of rising inflation rates. Similar to this, recession warnings have been sparked by the Fed&#39;s aggressive stance. Stagflation, however, is most certainly the worst outcome of the economic crisis for three reasons.Stagflation combines both of the undesirable outcomes. High inflation rates, poor growth, and high unemployment are all present throughout this time. Important inflation data continues to show record-high inflation rates. Similar to this, today&#39;s initial jobless claims data emphasises rising unemployment.The central bank is unable to develop a viable strategy to combat stagflation. While weak growth necessitates quantitative easing, high inflation necessitates monetary tightening. While the UK&#39;s ECB has already changed course, the US Fed is currently engaged in rapid tightening.Thirdly, stagflation can be combated by purposefully avoiding it. Stagflation, according to analysts, is already present. Professor Nouriel Roubini of NYU claims that stagflation is close at hand. According to Macro Intelligence 2 co-founder Julian Brigden, the current economic situation is stagflation 101.According to Kashkari, the current economic situation can very well constitute a transition. But all indications lead to price increases amid recession-like circumstances.How Can The Fed Handle This Crisis?Neel Kashkari doesn&#39;t think the Federal Reserve has stopped hiking interest rates. The Fed will keep adopting tough policy measures despite the weak growth and rising unemployment.According to Egon von Greyerz of Matterhorn Asset Management, the Fed may either undermine the US dollar by easing or provoke a systemic collapse by tightening.

Three Arguments For Stagflation As The "Crypto Killer"

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