Moody’s identifies crypto crash as key economic risk in 12-18 months

Moody’s Analytics has flagged a potential cryptocurrency market crash as a significant economic shock over the next 12-18 months. The likelihood of such a crash is assessed as relatively high, though the overall damage to the broader economy is expected to be limited. Moody’s did not specify a probability or price outlook for the crash. Additionally, Moody’s highlighted four risks that could have a greater economic impact than a crypto crash: a sharp sell-off in AI stocks, escalation of war in Iran, turmoil in the bond market, and a policy mistake by the Federal Reserve. With inflation remaining elevated, further tightening by the Fed could increase market pressures. Moody’s anticipates that the central bank will not raise rates this week and advises against doing so.

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