As the price of Bitcoin (BTC) flirts again with 24,000 dollars, the crypto community has allowed itself a little optimism. But this is not the case of 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, the head of monetary and capital markets for the IMF. In an interview with our colleagues from Yahoo Finance, he explained as follows:
“We might see new sales, both for crypto-assets and risky asset marketslike stocks.»
The IMF bases this analysis on the repercussions of the Terra (LUNA) affair. The collapse of the project created a tidal wave in the ecosystem, which caused other major platforms to plummet. And it could continue, according to Tobias Adrian:
“There could be new failures when it comes to “coin offerings” – especially among algorithmic stablecoinsthat have been hit hardest, others may 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 particularly observed by regulators in recent months.
👉 To go further – Stablecoin, all about this type of cryptocurrency
Regulate again and again
Conclusion without surprise from the IMF: we must continue to regulate the cryptocurrency markets more. However, the institution admits that the market is too vast to deal with on a case-by-case basis. It therefore welcomes initiatives that lock down access points:
“Regulate the [cryptomonnaies] by themselves will be difficult, but regulating the access points such as exchanges and wallet providers […]it is something very concrete and very doable.»
The IMF also points out that the cryptocurrency sector is sufficiently poorly 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 recovery in prices is somewhat weak. The price of Bitcoin (BTC) seems to have a hard time retake the psychological threshold of 25,000 dollars :
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 a foothold in traditional finance. Are we therefore witnessing a necessary consolidation, or a new wave of restrictions? The coming 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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