More crypto selloffs predicted by IMF.
With the crypto market crashing and the world of DeFi experiencing a downfall in general, the IMF predicts that there will be sell-offs. With the LUNA crashing with the USDT the pressure on the crypto market is immense.
Last year China and Russia put a blanket ban on any crypto-related activities which led to the prices coming crashing down. After that, the Russia-Ukraine conflict has also led to a dramatic decrease.
With many projects experiencing a rug pull and the developers quitting mid-way, many people have started thinking of crypto as too risky. Tobias Adrian, the current director of the Monetary and Capital Markets for IMF says the pressure combined with many failed projects may lead to sell-offs.
Stablecoins have also been hit hard in recent times, known for their performance and lower volatility. The BTC also hit a high in August of 2021 but now is priced at $22,000. With it showing signs of recovery, enthusiasts are hopeful that it will rise and reach a higher value.
Large selloffs are a sign that people want to be out of the market. It also shows that there has been a trust deficit and people deem the market to be too risky. They are minimizing their losses and looking to get out the maximum money they can.
But with the rising adoption of crypto one should definitely add it to their portfolio. It is a novel tech and with DeFi gaining more prominence than ever, it will be a great addition to your portfolio.