Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock
Whilst Bitcoin (CRYPTO: BTC) consolidates below the important $40k level, rising oil prices has created more fear surrounding out-of-control inflation and its subsequent impact on global markets. Many economists are now anticipating stagflation, which is a toxic combination of red-hot inflation and low or negative growth. Oil prices have rocketed to over $120 per barrel, as they approach record prices of $147 per barrel which was seen in 2008. Wheat, natural gas and industrial metals have all soared too. This raises concerns that the US’s Federal Reserve will be forced to raise rates faster and harder, meaning economic growth slows, whilst essential prices increase. The end result of stagflation is that global markets suffer, as we can see from the 1970s which was a poor decade for the S&P 500.
