The crypto Investors are getting into a new panic because the IMF agency predicted that near future economical growth will face significant downfall.
The International Monetary Fund (IMF) is a global financial institution. This financial institution is headquartered in Washington, D.C. It is supported by a total of 190 countries. IMF usually supports digital innovations and also blockchain technology but always suggests central banks & financial institutions to keep cryptocurrencies away from the banking system.
In the latest July update, IMF forecasts a slowdown in global economic growth short cause of the current macroeconomic environment. According to the IMF agency, the surge in inflation can take place, more than expected.
“The risks to the outlook are overwhelmingly tilted to the downside.”
Miles Deutscher, a crypto analyst, warned his Twitter followers and claimed that shortly crypto market may face significant volatilities, so we have to be ready. In particular, he said that earning reports by the leading companies like Microsoft, Google, Apple, and Meta may impact the money market because of their loss & corresponding plunge in share (stock) values.
Deutscher tried to say that impact on the traditional money market ( stock market) will result in a downfall for the crypto market also, so here we should remain ready against this situation.
Earlier this, on 26 July, Bloomberg reported that Federal Reserve may increase the interest rate by 0.75%, up to 2.25% in an attempt to tighten its monetary policy and stump inflation.
Popular crypto Influencers Lark Davis also tweeted about the possible significant volatilities in the crypto and stock market because of the Fed meeting & US GDP Q2 data release on 27 & 28 July respectively.
Read also: US political party supports Bitcoin against Fed Res
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