IMF: “Cryptocurrencies have become part of the digital revolution and affect the entire market”

МВФ: «Криптовалюты стали частью цифровой революции и влияют на весь рынок»

  • IMF released new study on the role of cryptocurrencies
  • Experts have recognized that Bitcoin is no longer “marginal money”, but an important player market
  • They are concerned about that cryptocurrencies are increasingly influencing the stock market

Cryptocurrencies are no longer a “marginal asset” in the global ecosystem. This is stated in a new study by the International Monetary Fund (IMF). Every year, digital assets increase their correlation with the stock market and play an increasingly important role in the economy.

“Cryptocurrency assets like bitcoin have gone from obscure instruments to an integral part of the digital asset revolution”

He added that this transformation raises concerns about financial stability.

See also: The IMF puts pressure on El Salvador over the legalization of bitcoin

Why bitcoin is increasingly affecting traditional Markets

Before the pandemic, BTC and ETH were rarely correlated with major stock indices. Investors only used them to hedge against fluctuations in other asset classes. But that all changed in 2021 when central banks reacted to the crisis. Financial conditions have improved and investor appetite has increased. As a result, both the prices of cryptocurrency and US stocks rose sharply.

The report gives an example in a pair of bitcoin and the S&P stock index 500. V 2017-2017 years between them there was almost zero correlation (0, 01), but it grew by 360% since 2020 on 2021 year.

пример в паре биткоин и фондовый индекс S&P 500. В 2017–2019 годах между ними была почти нулевая корреляция (0,01), но она выросла на 360% в период с 2020 по 2021 год.

Experts see risks in this, because now bitcoin has become a full participant and affects the entire stock market. Therefore, in the final summary, they urge countries to “coordinate efforts and develop a unified regulatory framework for the regulation of cryptocurrencies.”

Note that the IMF is strongly opposed to banning digital currencies, but they often talk about the importance of strict controls.

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