The cryptocurrency market, along with the stock market, had quite a difficult week, after data from the United States Bureau of Labor Statistics showed us that the road to combat high levels of inflation is still quite long. There is great uncertainty among investors about this economic recession that is just beginning, the question is, how critical will it be?

Last Friday, the inflation data for the month of May was released, with a result of 8.6% in the increase in consumer prices in the United States, being the highest value reached in the last 40 years. However, it should be noted that the monthly increase in the month of May was 1%, while in April we had witnessed an increase of 0.3%, which shows us that there is still strong inflationary pressure.

Uncertainty has increased considerably, after the increase in interest rates by the Federal Reserve did not have much effect, at least in the short term, in terms of the fight to reduce inflation. This, as a consequence, had a strong impact on high-volatility assets, generating strong downward movements in cryptocurrencies and stock indexes. The Nasdaq is down nearly 4%, while Bitcoin is down more than 6%.

Some analysts predict a stronger crisis than the one that occurred in 2008, given the high levels of inflation and the poor response capacity of the institutions, since it is speculated that they do not have a contingency plan. In other news, quite a lot of controversy has been generated after the news platform, Reuters, accused Binance of having more than 2.3 billion dollars in illegal funds, promoting different illegal businesses such as hacking and theft of information, scams and the drug traffic. In response, the world’s largest exchange released a statement emphasizing the misinformation of the population in the cryptocurrency ecosystem, showing itself tired of having to continuously clarify situations of misinformation thanks to these types of notes that seek to discredit the company and inject fear in users towards the crypto market. Now let’s talk about El Salvador, as the government-issued Bitcoin bond will be on hold for quite some time, as Alejandro Zelaya, finance minister of the Central American country, has mentioned that it is quite risky to launch it at this time of high volatility. and uncertainty, so we will have to wait until conditions are optimal to offer value and less risk to investors. It should be noted that it is estimated that the country has lost about 35.6 million dollars with its investments in Bitcoin after the crash generated this year. The arrival of Ethereum 2.0 is drawing near! The Ethereum blockchain may soon migrate to the Proof-of-Stake (PoS) protocol, as the Ropsten testnet managed to migrate successfully, this being a first test run for the Ethereum blockchain. There is no doubt that we are getting closer to seeing a revolution in Ethereum, becoming a greener and more efficient cryptocurrency. It is worth mentioning that there are still several tests left, since the Goerli and Sepolia test networks will have to undergo the same procedure before it is carried out with the main network, the Ethereum Foundation has communicated. Quite a tough start to the week for cryptocurrencies! Bitcoin is trading near $23,200 losing more than 12% of its value. The closest support is around $19,400, and it looks like it will be quite a long drop. BTC/USDT 1D (Gráfico de TradingView) On the other hand, Ethereum loses more than 15% of its value, trading close to $1,200. In this case, the closest support is found near $933. Will we see Ethereum fall below $1,000? ETH/USDT 1D (Gráfico de TradingView) If we analyze the numbers, there is no doubt that we are at the beginning of an economic recession that could be quite critical for a large part of the population, so we will have to manage our risks optimally and be very careful when investing in risk markets. However, they are economic cycles that occur from time to time, and projects that add value in the long term manage to get ahead. Without further ado, we wish you an amazing week.