Bitcoin and other cryptocurrencies have received a huge boost as International Monetary Fund (IMF) passed a positive remark.
Bitcoin investors heaved a sigh of relief on Wednesday as it abruptly reversed course and surpassed the $21,000 threshold. Since the IMF reduced its global growth outlook for this year and 2023, BTC fell below the $21,000 barrier overnight.
In its worldwide projection, the IMF cautioned that global economies may soon be on the verge of a full-blown recession, noting that the Ukraine-Russia crisis and ongoing COVID lockdowns have dealt a heavy blow to the world’s financial system.
Despite the IMF’s warning of a looming financial crisis, it clarified that the expansion of cryptocurrencies does not pose a threat to global financial stability. It also emphasized that the recent selloff in the larger cryptocurrency market has eased any lingering worries.
In a dire economic climate, the Fund views inflation and a recession as substantial dangers, but not crypto market volatility.
A report published by IMF reads, ”Crypto assets have seen a major sell-off that has resulted in large losses in crypto investment vehicles
..and the failure of algorithmic stablecoins and crypto hedge funds, but so far the impact on the larger financial system has been limited.”
As of this writing, Bitcoin was trading at $21,264, up 2 percent in the last 24 hours, while Ethereum was changing hands for $1,457 according to CoinMarketCap.
