Ahn Cheol-soo's Warning: "Cryptocurrency Crash Had Been Unusual Since a Month Ago"

Ahn Cheol-soo, Leader of the People Party / Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Daehyun] Ahn Cheol-soo, leader of the People Party, predicted that the value of cryptocurrencies will decline.

On the 2nd, Ahn stated at the "Policy Discussion on the Cryptocurrency Boom and Institutionalization," hosted by People Party lawmaker Kwon Eun-hee, "The biggest risk of cryptocurrencies is that central banks are on the verge of issuing digital currencies."

Ahn analyzed, "China is ahead, and no matter how long it takes, digital currency issuance will begin within three years. Central bank digital currencies have low volatility and are guaranteed by the central bank, so they could have a significant impact on the cryptocurrency market."

He added, "It has been unusual since a month ago," and advised, "Even then, right after I said something like this, cryptocurrencies experienced a sharp drop. It is better to view the situation from that perspective even now."

He also emphasized that due to recent rises in long-term interest rates and international commodity prices, central banks worldwide are under pressure to raise benchmark interest rates, stating, "The timing for asset value decline is approaching, so it is necessary to manage overall risks."

Ahn said, "When interest rates rise, liquidity decreases, and a revaluation of asset markets begins. Ultimately, this inevitably leads to a decline in asset values," adding, "This is the ABCs of economics."

This content was produced with the assistance of AI translation services.