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The IMF Have Stated a Growing Similarity Between Equity and Crypto Asian Markets

New data has shown a 10 fold increase in the correlation between Bitcoin and stocks in certain regions....
Gold bitcoin coin on background of growth chart
Photo by Ivan Babydov

New data has shown a 10 fold increase in the correlation between Bitcoin and stocks in certain regions. There was a clear division between crypto and the financial markets before the COVID-19 pandemic.

The International Monetary Fund (IMF), believes that this line has become thinner and that additional regulatory measures are needed to address the situation.

A group of IMF economists expressed concern over the dynamic of Asian markets. The integration of crypto into the financial system seems to be increasing rapidly in a blog posting from Sunday. The economists added that this poses some risks to financial stability.

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“While the financial industry appears to have been protected from these sharp movements it could be susceptible to future boom-bust cycles. Individual or institutional investors may be at risk of contagion if they have both traditional and crypto assets.
Economists also mentioned the Indian market as an example, where the return correlations between Bitcoin ( Bitcoin)and Indian stock markets has increased 10-fold since the pandemic.

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It is believed that crypto-related platforms and investment instruments in the stock market are increasingly accepted by investors.

The experts used the spillover method to find a sharp increase in volatility in crypto-equity in Thailand, Vietnam, and India. Asian regulators should “establish clear guidelines for regulated financial institutions,” inform, protect, and coordinate across jurisdictions.

Tobias Adrian (IMF director of capital market), stated on July 27 that algorithmic stablecoins could fail again. To better protect investors , stablecoins require a “global regulatory strategy.

Vitalik Ivanov

Vitalik Ivanov

Vitalik is a speaker / journalist. He has spoken and given presentations at many blockchain events across the world. Vitalik is based in the UK, he loves to travel and calls Dubai his "crypto home". Vitalik has enjoyed speaking at blockchain events and has a main focus on CBDC's, NFT's and altcoins. Vitalik says "Everything, and i mean everything will be an NFT one day".
Vitalik Ivanov

Vitalik Ivanov

Vitalik is a speaker / journalist. He has spoken and given presentations at many blockchain events across the world. Vitalik is based in the UK, he loves to travel and calls Dubai his "crypto home". Vitalik has enjoyed speaking at blockchain events and has a main focus on CBDC's, NFT's and altcoins. Vitalik says "Everything, and i mean everything will be an NFT one day".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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