That week! Is it May or Mayhem? Markets continued to slump throughout the week without any relief, which was fueled by weak global signals from the US market, the Luna fiasco, as well as the rupiah’s devaluation against the dollar.

It has affected all major sectors and the crypto industry is also facing heatwaves from global market volatility. The volatility index has risen more than 20% in the last two weeks, indicating a continued rise in overall uncertainty.

Many industry leaders have weighed in on this current volatility and the huge corrections that have removed hundreds of billions of dollars from the market are supposed to be a routine stress test for the cryptosphere.

Let’s see why this stress test is so important for market stability.

According to Celsius CEO Alex Mashinsky, in his recent interview, he has extensively explained that the industry goes through such a stress test, it’s a real scenario, a real stress test, unlike banks monitoring it on a spreadsheet. Excel calculation once or twice a year.

He further added that stress tests are good for any market condition as they bring out leverage so only those with a long term plan are left behind it is a paradigm shift from weak hands to strong hands for stabilize the market.

“Our industry goes through a stress test, a real stress test, not like the banks that do it in an Excel spreadsheet once or twice a year. You have to think of this as another stress test…

These stress tests are beneficial… they actually remove all the excess from the industry. Eliminate leverage. Decrease weak hands. Basically, it’s like transferring your coins from weak hands to strong hands, and they build an empire. Again, I hope that we establish this $25,000 as the new foundation for Bitcoin, and every time we go through these things, as you can see, we create a higher high, which we essentially defend over time.”

Do we have to worry about the next rate of inflation?

Well, that is a hot topic in the space, as stated by Mashinsky, all crypto market volatility depends on the upcoming inflation figures and it is also one of the main causes behind the market conditions globally.

So who can stop inflation?

Mashinsky has dropped his belief that the Fed does what it can to curb inflation, otherwise it will create an unhealthy environment for risky assets like cryptocurrencies. He believes that inflation will ruin everything if it ever comes back and therefore the Fed should work on a preventative measure.

“Inflation is like a beast. It can’t be put back in Pandora’s box once it’s been taken out, so we may have to lop off a lot of heads to remove inflation and conquer it.”

The magnitude of the last handicap

Although inflation is not new and many countries have been fighting it for a long time. Being the survivor of inflation, Mashinsky does not want to come to such a situation and warns investors and the Fed to take action soon as the Fed is committed to reducing inflation at all costs.

I was born and raised in Israel, where we had 400 percent inflation… Every day, prices fluctuated. We don’t want that, and the Federal Reserve is largely engaged in fighting inflation. They don’t care about the consequences for Bitcoin, the stock market, or anything else; is your main concern. That is why it is essential that these figures decrease. Everything I say assumes that the next set of inflation figures, or CPI, will be lower than higher.”

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