Investors are warning of further volatility in the digital asset markets as the International Monetary Fund (IMF) forecasts a slowdown in global economic growth.
The IMF’s July update on the World Economic Outlook titled “Gloomy and More Uncertain” points to “higher-than-expected inflation,” and a contraction of global output as indicators of incoming poor economic growth. The report states in succinct terms that there are likely economic slowdowns ahead.
“The risks to the outlook are overwhelmingly tilted to the downside.”
Macro factors have been linked to the crypto bear market, prompting crypto analyst Miles Deutscher to warn his 154,000 Twitter followers to expect volatility in the markets.
He noted the incoming earnings reports from Microsoft, Google, Apple, and Meta along with the gross domestic product (GDP) numbers from the U.S. could create further turbulence.
It’s going to be a massive week for the markets.
July 26: FOMC Meeting, Microsoft & Google Earnings
July 27: Meta Earnings
July 28: US Q2 GDP Release, Apple EarningsVolatility incoming.
— Miles Deutscher (@milesdeutscher) July 25, 2022
Crypto investors are also bracing for a rise in interest rates in the United States this week. Bloomberg reported on July 26 that the Fed is expected to raise rates by as much as 75 basis points, or 0.75%, up to 2.25% in an attempt to tighten its monetary policy and stump inflation.
There are also industry observers who expect the U.S. to be officially in recession when the Q2 GDP figures for the country are published on July 28. Investopedia defines a recession as two consecutive quarters of negative GDP growth.
Major market moving events this week for #bitcoin, #crypto, and #stocks.
– Corporate earnings reports starting
– FED Meeting (27th)
– US GDP Q2 data release (28th)White House already getting in front of what must be bad data saying it is time to change the definition! LOL!
— Lark Davis (@TheCryptoLark) July 26, 2022
Crypto market YouTuber DustyBC tweeted on July 26 that the global slowdown coupled with potentially reduced U.S. GDP numbers could explain why Bitcoin (BTC) price dipped below $21,000.
International Monetary Fund (IMF) released its July 2022 World Economic Outlook, forecasting significant slowdown in global growth which should average 3.2% this year and 2.9% in 2023.
This + tomorrow’s FOMC meeting could explain why #BTC dipped below $21,000
— DustyBC Crypto (@TheDustyBC) July 26, 2022
Meanwhile, founder of Cosmos-based…
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