The conditions of the crypto market may be worse – IMF

The troubles in the cryptocurrency market just started to ease over the past few days with a disappointing statement from the International Monetary Fund (IMF). Tobias Adrian, director of monetary and capital markets at the International Monetary Fund, has said that the situation in crypto could be worse. In a statement, he has said that in the coming times, some crypto projects may face big losses and many projects may also fail.

Tobias Adrian Yahoo! In an interview to Finance, it has been said that the situation of the cryptocurrency sector may get worse in the coming times. The cryptocurrency market has taken a beating since the crash of TerraUSD in the past. After that the market started declining and this trend continues till now. However, in the last few days, investors have got a sigh of relief as the prices have started some correction. But the director of the IMF has again hit this expectation of investors.

Adrian says that some more crypto projects are likely to crash in the coming times. He said that the times ahead are not good for stable coins running on the back of fiat money. He specifically mentioned Tether in it. Tether is the leading stable coin issuer. However, Adrien also noted that there are some stable coins that are unlikely to pose any such threat.

Further, the director of the IMF said that there is a recession in the US economy. In such a situation, the selling can get more intense and in the coming time, a sharp sell-off can also be seen in the crypto market. There is a possibility that the central bank may again announce a rate hike to check inflation. Senator Elizabeth Warren of Massachusetts recently took a dig at the US Federal Reserve’s aggressive monetary policy, saying that this policy could lead to a terrible recession.

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