IMF Deputy Managing Director Remarks on 'Very Quick Moves' in Crypto Market
Table of contents
"I have completely stayed away from it [crypto]. But that's just me and my level of risk aversion.
The IMF official also noted the recent decline in the "speculative" asset class, emphasizing that it is not a market with "easy returns." She said,
“It went from about a $3 trillion market to a $1.5 trillion market in about six months — very quick moves. It is not a very easy-return investment. So these are very large risks you are taking,”
Volatility isn't Enough to Keep Crypto Out
At the Summit, IMF managing director Kristalina Georgieva reportedly stated that investors must make informed decisions as the Terra-led slump hounds the market. She said,
"The less there is backing it, the more you should be prepared to take the risk of this thing blowing up in your face."
Following the de-peg of the Terra UST stablecoin, administrators and officials have called for rapid regulation of crypto assets.
Especially since BTC's comeback was very temporary, in the previous 24 hours, Bitcoin has fallen 3% below the crucial psychological milestone of $30,000.
"Citizens have lost trust in crypto," stated François Villeroy de Galhau, a governor of the French Central Bank, citing the volatility. According to CNN, Galhau added,
Despite the liquidity outflow, bitcoin supporters are showing up in force at the World Economic Forum this year. A free bitcoin pizza stand and a "Liquidity Lounge" were said to have adorned the Summit's early days.