“Crypto assets could crash within 18 months” ... U.S. credit rating agency warns [Crypto Briefing]

[Financial News] As the crypto market’s gradual uptrend faltered, warnings of a crash emerged on Wall Street.   According to crypto news outlets including BeInCrypto on the 27th, Moody’s Analytics, a subsidiary of U.S. credit rating company Moody’s, identified a crash in the crypto market as one of the major economic shocks that could occur over the next 12 to 18 months.
Moody’s Analytics assessed the likelihood of a crash as high, but said that “the damage to the broader economy would be relatively limited.” It did not provide a specific probability of a crash or a price forecast.
Moody’s identified four risks that could have greater economic repercussions than a crypto crash: a sharp drop in artificial intelligence (AI) stocks, an escalation of the war with Iran, turmoil in the bond market, and policy mistakes by the Federal Reserve System (Fed).
The company said, “With inflation still high, further tightening by the Fed could increase pressure on markets,” adding, “The Fed will not raise interest rates this week, and it should not do so.”
Bitcoin’s price barely recovered to the $80,000 level that day. According to crypto market data platform CoinMarketCap, as of 8:40 a.m. that day, Bitcoin was trading at $80,013 (about 106.01 million won), down 0.21% from 24 hours earlier. At the same time, Ethereum, the leading altcoin, stood at $2,319 (about 3.07 million won), down 0.48% from the previous day.
Bitcoin has recently fluctuated around $80,000 as geopolitical uncertainty in the Middle East, rising international oil prices, and a U.S. central bank interest-rate hike in October, among other factors, have combined to weigh on the market. Reduced institutional investor flows have also limited price gains. U.S. spot Bitcoin ETFs saw net outflows of $635.6 million (about 843.5 billion won) on the 22nd, followed by about $138 million (about 183 billion won) on the 23rd.
[email protected] Han Young-jun Reporter