The growing popularity of cryptomones such as Bitcoin or Ethereum, whose market value has come to quintuplicate in recent times, reaching 3 billion dollars point to a capacity to destabilize markets that it requires approaching with a global regulatory framework, as indicated by the Fund International Monetary (IMF).
According to the calculations of the institution, the market value of these new assets increased up to almost 3 billion dollars last November from about 620,000 million dollars in 2017, although market capitalization had been reduced by 2022 Around around 2 trillion dollars, which still represents an increase of almost four times since 2017.
Likewise, in addition to the greater popularity and adoption of the cryptoactive, the IMF emphasizes that the correlation of these with traditional investments such as equities increased significantly, which limits the perceived benefits of risk diversification and increases the risk of contagion in the financial markets.
In this sense, the institution points out that this increase in the correlation between shares and crypts increases the possibility of contagions between the different kinds of assets, as suggested by the substantial rise of the indirect effects of prices and the volatility of the Bitcoin on the stock markets , and vice versa, between 2020-21 compared to 2017-19.
The largest and considerable joint movement and indirect effects between cryptomers and bags indicate a growing interconnection between the two kinds of assets that allows the transmission of ‘shocks’ with capacity to destabilize financial markets.
“Our analysis suggests that the cryptoactive are no longer outside of the financial system,” says the main financial director and director of the Department of Monetary Markets and Capital of the Institution, Tobias Adrian, for whom, given its relatively high volatility and valuations, Its oscillations could soon raise risks for financial stability.