Analysts at the International Monetary Fund have pointed to an increase in the correlation between digital currencies and Asian markets.
According to an IMF study, says that in the Asia-Pacific region, cryptos are rapidly integrating into the traditional financial system. Bitcoin and other virtual currencies move along with the indicators of business activity, and this trend creates risks for the stability of the regional economy.
The main threat to the financial sector of the Asia-Pacific region comes from those investors who simultaneously invest in traditional assets and cryptocurrencies. For example, in India, the correlation of Bitcoin and local stock indicators increased tenfold during the coronavirus pandemic.