Markets are now pricing in the “long-term” macro impact of the ongoing war.

Notably, one consistent theme across analysts is that expectations for rate cuts this year have effectively dropped to zero. Historically, crypto has thrived in low-rate environments, where cheap liquidity fuels risk-taking and makes leverage more accessible.

However, with inflation risks embedding deeper into the economy, the outlook for fresh capital inflows is clearly weakening. In fact, a recent Bloomberg report indicates that investors are pricing U.S. inflation above 5% over the next 12 months, based on the 1-year breakeven rate.

So the natural question is, what does this mean for crypto?

Interestingly, some analysts are now flagging the…