Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) were trading over 4% and 5% lower, respectively, on Monday. The move lower is the continuation of a downtrend, which escalated on May 5.
Since that date, Bitcoin has plunged over 18% and Ethereum has plummeted about 19%, as fear of a recession has gripped traders and investors, causing an accelerated move to the downside.
A recession takes place when economic activity begins to decline due to people deciding to spend less money and save more. Rising inflation and the Federal Reserve’s decision to continue hiking interest rates contributes to the cycle because purchasing everyday items becomes too expensive and investing cash becomes more lucrative.
The cryptocurrency sector is highly susceptible to a possible recession because its utility is entirely dependent on traders and investors using coins and tokens to pay for items.
No stock or crypto ever …
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