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Global Recession Is Coming, IMF Chief Warns – What Are The Means For The Cryptocurrency Market

Global Recession Is Coming, IMF Chief Warns – What Are The Means For The Cryptocurrency Market
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The International Monetary Fund (IMF) is an international organization with 190 member countries. They cooperate in an effort to stabilize the world economy. By following economic and financial events, the IMF monitors and supports the economy. It tracks how countries operate and possible threats, such as trade disputes or uncertainties. To offer its members economic advice, provide aid and short-term loans to nations in difficulty.

Kristalina Georgieva has been Managing Director of the IMF since 2019. Ms. Georgieva is the first Bulgarian to lead the IMF.

In an interview aired on CBS’s Face The Nation on January 1, International Monetary Fund Managing Director Kristalina Georgieva said, “We expect a third of the global economy to be in recession.” The cause will be the slowdown of the world’s three largest economies, the United States, the European Union and China.

She also said that the United States can avoid a recession, but the European Union has already slowed down. The nations were greatly affected by the outbreak of war between Ukraine and Russia. A slowdown in major economies would have a significant influence on emerging markets, Georgieva added. The slowdown is becoming a global trend, dragging the entire global market with it.

The crisis in China

Following the huge number of positive Covid cases in December, China forced its people to stay at home and business operations came to a halt. The country’s economic activity is at its lowest since 2020, when the pandemic first hit.

More than a third of the world’s economies will be hit by a global recession, and there’s a 25% chance that global GDP will only grow by 2% or less until 2023.

Impact on Crypto Markets

Recessions can have a significant impact on the cryptocurrency industry. During economic downturns, people may be more inclined to invest in safe-haven assets such as Bitcoin, which has a history of being relatively stable during times of economic uncertainty.

On the other hand, the prices of many cryptocurrencies can be very volatile, and the value of a particular cryptocurrency can be influenced by various factors, including market demand, government regulations, and general economic conditions. As a result, it is difficult to predict how the cryptocurrency market will react to a recession.

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Photo by Elena R

Elena R.

Elena is an expert in technical analysis and risk management in the cryptocurrency market. She has over 10 years of writing experience – hence, she is an avid journalist with a passion for finding new insights into the age of crypto.

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