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Top economist issues major warning on stocks, gold, silver, and crypto prices

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Will the crypto market recover as the sell-off intensifies?

A top economist has sounded a major warning on key assets like stocks, gold, silver, and the crypto market. 

Summary

  • Stocks and crypto prices could be at risk of a bigger dive in the near term.
  • Mark Zandi, a top economist, highlighted some major risks facing the market.
  • He pointed to the slowing economy, valuation, and concerns in the Treasury market.

The stark warning as these assets have become highly volatile in the past few weeks or months. Crypto prices have sunk, with Bitcoin (BTC) and most altcoins being in a technical bear market.

American stocks have also wavered, with the S&P 500 Index remaining below its all-time high. It has barely moved this year. Similarly, the Dow Jones and Nasdaq 100 indices have remained in a tight range lately. Gold and silver prices have also pulled back from their all-time highs.

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Mark Zandi warns on stocks, gold, silver, and crypto prices

In a statement on Sunday, Mark Zandi, the top economist at Moody’s, warned that the financial market was fraught and that it may experience a sharp pullback soon.

He pointed to the ongoing complacency among investors, who are using dips as buyiyyng opportunity. Also, he pointed to the increasing speculation, where investors believe that prices will rally in the future because they did so in the past.

Zandi has identified more risks in the market. For example, he observed that the US economy was growing below its potential, with the real GDP growing by slightly above 2%. The estimated potential is about 2.5%. 

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At the same time, the labor market has flatlined, with the unemployment rate remaining above 2%. The economy added less than 200,000 jobs last year, the smallest increase in years.

Zandi also pointed to the ongoing woes in the Treasury market, where long-term bond yields have continued rising in the past few months. Hedge funds have increased their leverage in the market, leading to more risk as the US public debt continues rising.

Zandi also believes that the stock market has become highly overvalued and disconnected from the economy.

Two major risks persist 

Stock and crypto prices are vulnerable amid major risks in the market. The first major risk is that Donald Trump may launch an attack against Iran anytime soon.

In a statement last week, Trump noted that he was considering a limited strike to push the Iranians to the negotiating table. Iran, on the other hand, has warned that any attack will lead to a wider war that may lead to a wider war in the region. 

A war would lead to more volatility in the stock and crypto markets by stimulating inflation in the US. A high inflation rate, on the other hand, would make it hard for the Federal Reserve to cut interest rates.

There are also trade risks as Donald Trump considers responding to his Supreme Court loss last Friday. He announced a global tariff of 15% using another rule that allows the president to levy tariffs for 150 days.

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Crypto World

South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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