Fun

IMF Sees Significant Increase in Correlations Between Bitcoin and Asian Equity Markets

News Feed - 2022-08-23 12:08:09

IMF Sees Significant Increase in Correlations Between Bitcoin and Asian Equity Markets


Officials at the International Monetary Fund (IMF) say that the correlation between the performance of the Asian equity markets and crypto assets such as bitcoin and ethereum has increased significantly. IMF Staff on Crypto and Correlation to Asian Equities


The International Monetary Fund (IMF) published a blog post on Monday on cryptocurrency regulation and how crypto is now “more in step with Asia’s equities.”


Anne-Marie Gulde-Wolf, deputy director of IMF’s Asia and Pacific Department, Nada Choueiri, the mission chief for India, and Tara Iyer, an economist in the global financial stability analysis division of the IMF’s Monetary and Financial Markets Department, authored the post.


“While the returns and volatility correlations between bitcoin and Asian equity markets were low before the pandemic, these have increased significantly since 2020,” they wrote. “Crypto trading, however, soared as millions stayed home and received government aid, while low interest rates and easy financing conditions also played a role.”


They detailed: As Asian investors piled into crypto, the correlation between the performance of the region’s equity markets and crypto assets such as bitcoin and ethereum has increased.


The IMF officials noted that for example, “the return correlations of bitcoin and Indian stock markets have increased by 10-fold over the pandemic, suggesting limited risk diversification benefits of crypto.” In addition, “The volatility correlations have increased by 3-fold.”


The IMF officials further noted that “the rise in crypto-equity correlations in Asia has been accompanied by a sharp rise in crypto-equity volatility spillovers in some Asian countries,” elaborating: This indicates a growing interconnectedness between the two asset classes that permits the transmission of shocks that can impact financial markets.


The IMF officials also asserted that “Regulatory frameworks for crypto in Asia should be tailored to the main uses of such assets within the countries.”


The authors added, “They should establish clear guidelines on regulated financial institutions and seek to inform and protect retail investors,” elaborating: Finally, to be fully effective, crypto regulation should be closely coordinated across jurisdictions. Tags in this story IMF, imf crypto, imf cryptocurrency


What do you think about the comments by the IMF officials? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Skybridge Expects Bitcoin to Reach $300K in 6 Years — "You Are Going to See a Lot More Commercial Activities" MARKETS AND PRICES | Aug 14, 2022 Weekly NFT Sales Show Improvement, Fantom and Immutable X NFT Volume Spikes MARKETS AND PRICES | Aug 14, 2022


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleStifel Financial: 97% of US Executives Surveyed Are Bracing for Recession Next articleIranian Association Calls for Stable Crypto Regulation as Government Plans Widespread Use of Crypto in Foreign Trade Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Market Update: Blood in the Crypto Streets, Bitcoin Miner Dumps, CME Gap, Defi Doldrums
Market Update: Blood in the Crypto Streets, Bitcoin Miner Dumps, CME Gap, Defi DoldrumsThe cryptocurrency economy slid significantly on Thursday afternoon (ET), as the aggregate mar
Report Claims Harvard, Yale, and Brown University Endowments Have Been Discreetly Buying Bitcoin
Report Claims Harvard, Yale, and Brown University Endowments Have Been Discreetly Buying Bitcoin According to sources familiar with the matter, a number of Ivy L
Savannah Fortis12 hours agoMixed signals: Binance denies reports of $90B in crypto trades in ChinaBinance has refuted claims published in The Wall Street Journal that the exchange has conducted billions of dollars in cry
Arijit Sarkar39 minutes agoWorldcoin rebuts reports of lackluster takeup as Altman cites Japan queuesA video shared by Worldcoin co-founder Sam Altman shows a long queue of people in Japan reportedly waiting to collect $
Bitcoin, Ethereum Technical Analysis: BTC, ETH Stall Ahead of Powell Testimony
Bitcoin, Ethereum Technical Analysis: BTC, ETH Stall Ahead of Powell Testimony Bitcoin remained in consolidation earlier in Tuesday’s session, as markets prepared for this a
Tom Mitchelhill2 hours agoBinance users in Hong Kong lose $450K in wave of fraud texts: HK policeHong Kong police have issued a warning concerning a recent Binance phishing scam targeting Hong Kong users of the platform.
Crypto Biz: Tokenization spikes, SEC delays Bitcoin ETF options, and more
Ana Paula Pereira3 hours agoCrypto Biz: Tokenization spikes, SEC delays Bitcoin ETF options, and moreThis week’s Crypto Biz explores the rise of tokenization markets, PayPal’s stablecoin, SushiSwap’s move to a “L
EU MiCA stablecoin regulations come into effect: Law Decoded
David Attlee4 hours agoEU MiCA stablecoin regulations come into effect: Law DecodedNoncompliant stablecoin issuers could potentially exit the EU market entirely, with a shift toward euro-backed stablecoins as demand pick
XRP Bulls Struggle To Break Key Resistance At $2.2546: What’s Next?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
California Governor Newsom Signs Executive Order on Crypto, Blockchain, and Web3
California Governor Newsom Signs Executive Order on Crypto, Blockchain, and Web3 California Governor Gavin Newsom has signed an executive order on crypto and blockchain to create a
Venom Blockchain Partners with DAO Maker to Incubate Web3 Startups Focused on Real-world Use Cases
Venom Blockchain Partners with DAO Maker to Incubate Web3 Startups Focused on Real-world Use Cases press release PRESS RELEASE.Abu Dhabi, 13 February 2023—Venom Foundation, the fi
Report: Estonian Prime Minister Calls for Restriction of Cryptocurrencies
Report: Estonian Prime Minister Calls for Restriction of Cryptocurrencies The Prime Minister of Estonia has said cryptocurrencies must be restricted in order to address loopholes t