SENSITIVE CRYPTOCURRENCY MARKET
The world is currently roughly 400% in debt, while the United States is 100% in debt, making this the most debt-ridden economy the world has ever known. Raising interest rates on citizens in an economy with significant debt hurts people quickly, as is the case right now. Our world is extremely sensitive to interest rate increases. Controlling economies is incredibly challenging, and there aren't many interest rates offered by central banks.
The interest rate is not even up to 6%, despite the fact that we speak about raising it, and it is negatively affecting the economy because of how fragile it is. The current state of the global macroeconomic is unstable and might suddenly collapse, bringing down the entire financial system. The globe is more indebted than it has ever been, and since the inflation is out of control right now, hiking interest rates is burdening the system greatly. The combination of all these events is causing significant layoffs at major tech firms, as well as a peak in market anxiety and a sharp slowdown in growth.
Currently, there is a fantastic dynamic that is a supply-driven shock, especially in Europe where they can access the energy they needed thanks to Russia. The price of electricity has soared in Europe, and the European Central Banks have already begun to provide handouts to individuals in an effort to get them out of their precarious condition. On the other hand, because you are not making a lot of money, the value of the US dollar has decreased. All around the world, businesses and banks began to need to keep money in reserve in order to obtain the dollar to pay off their debt.
The first to blow up in the race for dollars is Sri Lanka, but many other nations are also approaching the IMF with their needs. The value of the dollar has increased as a result of all these dollar requests. When inflation is going to fall and growth is collapsing, there is a good possibility that central banks will intervene to attempt to maintain growth.
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