IMF Says Growing Connection Between Crypto and Traditional Finance Pose New Risks

IMF Says Growing Connection Between Crypto and Traditional Finance Pose New Risks


The International Monetary Fund (IMF) is issuing a warning to investors that a growing link between crypto assets and the stock market may pose a risk to the financial system.

In a new report, the IMF says that the rising popularity of digital assets combined with their volatile prices could spell trouble for financial stability as cryptocurrencies continue to intertwine with traditional markets.

“The intra-day price volatility of two major crypto assets, Bitcoin (BTC) and Ethereum (ETH), is now about four to eight times more correlated with the volatility of the main US equity market indices S&P 500, Nasdaq, and Russell 2000 indices, compared to 2017-19.”

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The international organization says that crypto assets are no longer on the outer limits of the financial world, which

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