The Recent S&P 500's Bear Market Shows How Different External Factors Have Affected Crypto
Updated: Oct 29
The recent S&P 500 bear market shows how different external factors affect crypto, causing it to fluctuate between incredible highs and painful lows violently. Some new CNBC reports share some insight, "since the modern S&P 500 index began in the late 1920s, the average bear market has translated into a 38% price decline lasting an average of almost 19 months."
As 2022 ends, we're facing a different monster: inflation. This financial mess that's beginning to unfold is nothing like we've seen since over 40 years ago. Between governments spending massively to stimulate economies and supply chain bottlenecks, trouble is brewing for the foreseeable future.
What's truly interesting is that many experts have noticed that crypto is experiencing a sharp decline with these global economic conditions. Some say crypto is the only asset seeing such a massive downturn.
The point to take away from this is that crypto isn't a separate entity from the markets but tends to be primarily affected by external actors.
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