<p class="is-style-lead">In an in-depth analysis by the CryptosRUs YouTube channel, recent developments in the global cryptocurrency markets are examined against the backdrop of rising inflation in the UK and US and significant crypto initiatives in China.</p>



<p>In recent weeks, UK and European markets have experienced a substantial sell-off following news that inflation has risen to an unexpected 6.8% &#8211; over half a percent more than anticipated. Simultaneously, the US grapples with a looming debt ceiling crisis, concerns over commercial banking, and a potential credit crunch.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/bitcoins-role-as-a-crisis-hedge-and-the-implications-for-the-usd/" class="cn-block-related-link__link">
            Bitcoin’s role as a crisis hedge and the implications for the USD        </a>

    
</div>


<p>According to George, the presenter of <em>CryptosRUs</em>, the cause of heightened inflation levels seems complex. It is allegedly tied to large amounts of printed and distributed money, devaluing the currency and making other goods relatively more expensive.</p>



<p>Central banks are seeking solutions to the issue of excessive money printing by governments. Still, there&#8217;s a problem: they cannot simply retract the money without causing harm to the economy. The purported dilemma here is that if inflation rises in the US, it may lead to disaster. Conversely, not raising the debt ceiling may cause further inflation.</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="UK Inflation Data Causing PANIC | Bitcoin Holds" width="1020" height="574" src="https://www.youtube.com/embed/qzPJbUSzSMY?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p>Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>), a prominent player in the cryptocurrency world, experienced a dip amidst these financial fluctuations. However, the sell-side risk ratio for bitcoin currently stands at an all-time low due to its relative lack of volatility. Bitcoin&#8217;s network remains decentralized, unstoppable, and grows in the use case.</p>



<p>Moreover, cryptocurrency ecosystems are expanding. Apps like Venmo, Cash App, PayPal, and Robinhood allow users to send or receive bitcoin between apps. Contrary to traditional banking, bitcoin transactions don&#8217;t rely on banks as intermediaries and can be directly controlled by the user.</p>



<p>Tesla CEO Elon Musk, though known for his affinity for dogecoin (DOGE), has warned the public against investing all their resources into the cryptocurrency.</p>



<p>In the Asian markets, George suggests that China is demonstrating a significant shift towards cryptocurrencies. Starting June 1st, Hong Kong is expected to permit cryptocurrency trading.</p>



<p>This move, coupled with the growth of the Chinese-based blockchain platform conflux, indicates China&#8217;s move to embrace cryptocurrencies. Nevertheless, restrictions remain for Hong Kong traders who can only purchase cryptocurrencies from a pre-approved list, although there may be exceptions for Chinese-based ones like conflux.</p>



<p>Amidst the overseas sell-offs, the market presents a mixed picture, but bitcoin&#8217;s volatility remains low. Financial advisors recommend maintaining a 25-30% cash portfolio for stability.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            Read more:
        </span>

    
    
        <a href="https://crypto.news/glassnode-says-big-bitcoin-price-swings-may-be-coming/" class="cn-block-related-link__link">
            Glassnode says big bitcoin price swings may be coming        </a>

    
</div>

Bitcoin holds strong as inflation causes chaos on UK markets

crypto.news

Other articles published on May 25, 2023

Gold Guaranteed Coin: A Stable and Secure Investment Opportunity

German banks do not want to miss out on crypto

SubQuery Extends Data Indexing Capabilities for Evmos, Bridging Ethereum and Cosmos Ecosystems

The $DONS Recap 25.05.2023

Your identity in the Web3 era: A noob’s guide to decentralized identity

Blur Dominates 82% of the NFT Lending Market

Join our free newsletter for daily crypto updates!