While the inflation rate and recession are rising, a recent report that surfaced on the internet says that the number of bankruptcy filings has surged to a dangerous level, which is not just limited to the crypto space.
The indicator shows a crunch in the global economy as this year witnesses record-high bankruptcy by small- to mid-sized private businesses and banks. Earlier this year, three major banks, Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank, already filed for bankruptcy.
On the “4-week moving average of U.S. bankruptcy filings, the current level of bankruptcy is on par with the Great Recession in 2008 and the 2020 COVID-19 pandemic.
The indicator stipulates that at this level, a massive stock market crash and financial instability followed.
However, the report is a tight slap for those crypto critics who were always highlighting crypto turmoil by citing the recent collapse of crypto exchanges like FTX.
The report clears up the fuss around the crypto space, showing that the current financial devastation is not only limited to the cryptocurrency market but also deepens its roots in the global economy.