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Inflation Risk and Market Volatility: Will Crypto Follow Equities?

Inflation Risk and Market Volatility: Will Crypto Follow Equities?

Historical trends suggest that a major market crash setup could be forming.

Notably, this is not limited to the crypto market alone. Recently, capital inflows into U.S. equities have reached all-time highs, showing strong market resilience despite ongoing macroeconomic uncertainty. As a result, investors increasingly view equities as overvalued relative to broader market sentiment.

However, it is not just technical overvaluation pointing toward potential risk. Historical data shows that the last three major market crashes all occurred when the Consumer Price Index (CPI) rose above the 3.8% level, including the dot-com crash (−49%), the financial crisis (−57%), and the 2022 rate-hike selloff (−25%).

u.s stock market
Source: TradingView

Against this…

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