Cryptocurrency crash is far from over, IMF says

Cryptocurrency crash is far from over, IMF says

Thought the cryptocurrency crash was behind us? Not so. Tobias Adrian, the IMF’s Director of Finance and Capital Markets, says Bitcoin and other digital currencies will continue to decline in the coming months. Meanwhile, some experts expect to see a rebound by 2023.

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For several months now, Bitcoin and other cryptocurrencies, as well as their investors at the same time, have had a rough time. After a bullish run through 2021, the markets are now in a free zone, dashing the hopes (and wallets) of digital currency owners in the process. Many are now predicting that Bitcoin will soon reach the critical value of $10,000.

And they are not alone. The IMF, in the person of Tobias Adrian, director of financial markets of the organization, wants to focus on equality. “We could see further declines, both in commodities and in riskier asset markets, such as stocks”says the latter, who is particularly pessimistic about stablecoins.

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The IMF predicts a bleak future for cryptocurrencies

As a reminder, stablecoins took a big plunge in May, dragging down the entire cryptocurrency market. If these are not solely responsible for the current crash, their historic crash has scared investors, who are now struggling to recover. Despite everything, Tobias Adrian still refuses to compare the situation with the economic crisis of 2008.

“What was very worrying in the 2008 crisis was that banks were exposed to shadow money. [les organismes extérieurs au système bancaire, ndlr]and we do not see this arising from banks […] via crypto now », he explains. This does not mean, however, that no control of the IMF is necessary.

Tobias Adrian admits that the task will be very difficult for the IMF, due to the growing number of cryptocurrencies. According to him, the key lies in the control of “entry points”, such as the transactions themselves or the wallet providers. Experts, meanwhile, hope that Bitcoin can finally rally within 4 to 6 months.