As the price of Bitcoin (BTC) flirts with $ 24,000 again, the cryptocurrency community has been indulging in some optimism. But this is not the case with the International Monetary Fund (IMF), which launches a warning on the price of cryptocurrencies.
According to the IMF, cryptocurrency prices could drop further
This pessimistic outlook was expressed by Tobias Adrian, head of money and capital markets for the IMF. In an interview with our Yahoo Finance colleagues, he explained the following:
“We may see new sales, for both cryptocurrencies and risky asset marketslike actions.“
The IMF bases this analysis on the repercussions of the Land (LUNA) deal. The collapse of the project created a tidal wave in the ecosystem, which caused the collapse of other large platforms. And it could go on, according to Tobias Adrian:
“There may be new failures when it comes to “coin offerings” – especially among algorithmic stablecoinswho have been most affected, others may collapse.“
The period is indeed complicated for this type of cryptocurrency. USDD, Tron’s algorithmic stablecoin, has only recently managed to regain parity with the dollar. All stablecoins have also been particularly watched by regulators in recent months.
👉 To go further – Stablecoin, all about this type of cryptocurrency
Adjust again and again
Conclusion with no surprises from the IMF: we need to continue to regulate the cryptocurrency markets more. However, the institution admits that the market is too large to be addressed on a case-by-case basis. It therefore welcomes initiatives that block access points:
“Adjust the [cryptomonnaies] alone it will be difficult, but regulating the access points as exchanges and wallet providers […]it is something very concrete and very feasible.“
The IMF also points out that the cryptocurrency sector is sufficiently little connected with that of “classic” finance. so that there is no risk of contagion.
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Bitcoin raises its head (a little)
If we look at the market as a whole, we see that the price recovery is somewhat weak. The price of Bitcoin (BTC) appears to be having difficulty resume the psychological threshold of $ 25,000 :
Bitcoin (BTC) reaches $ 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 a foothold in traditional finance. Are we therefore witnessing a necessary consolidation or a new wave of restrictions? The next few months we will tell.
👉Read also – Stablecoins: USDC on the verge of overtaking Tether’s USDT?
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Source: Yahoo Finance – Chart: TradingView, BTC / USDT
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