The IMF warns of an even sharper drop in cryptocurrency prices
With Bitcoin (BTC) price flirting with $24,000 again, the crypto community has allowed itself a bit of optimism. However, this is not the case for the International Monetary Fund (IMF), which is issuing a warning on the price of cryptocurrencies.
According to the IMF, cryptocurrency prices could fall further
This pessimistic outlook was voiced by Tobias Adrian, head of money and capital markets at the IMF. In an interview with our colleagues at Yahoo Finance, he explained as follows:
“We might see new sales for both crypto assets and risky asset marketslike stocks.»
The IMF bases this analysis on the implications of the Terra (LUNA) affair. The collapse of the project triggered a tidal wave in the ecosystem that brought down other major platforms. And according to Tobias Adrian it could go on:
“There could be new failures in “Coin Offerings” – especially among the algorithmic stablecoinsthose hit the hardest, others might collapse.»
The period is indeed complicated for this type of cryptocurrency. USDD, Tron’s algorithmic stablecoin, only recently managed to regain parity with the dollar. All stablecoins have also been closely watched by regulators in recent months.
👉 To go further – stablecoin, everything about this type of cryptocurrency
Regulate again and again
Conclusion without surprise from the IMF: We must continue to regulate the cryptocurrency markets more closely. However, the institution acknowledges that the market is too large to deal with on a case-by-case basis. She therefore welcomes initiatives that block access points:
“Regulate them [cryptomonnaies] alone will be difficult, but to regulate the access points such as exchanges and wallet providers […]it’s something very concrete and very doable.»
The IMF also points out that the cryptocurrency sector is sufficiently badly connected to that of “classic” finance. so that there is no risk of infection.
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Bitcoin raises its head (a little)
Looking at the market as a whole, the price recovery is rather weak. Bitcoin (BTC) price seems to be having a tough time Reconquer the psychological threshold of $25,000 :
Bitcoin (BTC) hits $25,000
In any case, the last few months have put stablecoins in the spotlight. These cryptocurrencies are of particular interest to regulators and institutions because they have gained a foothold in traditional finance. So are we witnessing a necessary consolidation or a new wave of restrictions? We will tell the coming months.
👉 Also read – Stablecoins: USDC on the verge of overtaking USDT from Tether?
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Source: Yahoo Finance – Chart: TradingView, BTC/USDT
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As a journalist at Cryptoast, I got caught up in the cryptocurrency pot a few years ago. I’m passionate about the innovative technologies that come from the blockchain and I love finding the crispest bits of information to share with you.
Marine Debelloir
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