Tobias Adrian, director of money and capital markets at the International Monetary Fund, told Yahoo! In an interview with Finance, he said he believes more crypto projects may fail in the future. It is worth noting that the current cryptocurrency crisis has been triggered in large part by the fall of the TerraUSD (UST) algorithmic stablecoin, which has crashed the entire ecosystem. More vulnerable price-backed stablecoins are likely to see bank runs in the near future. As an example of such projects, he specifically mentioned Tether, the leading stablecoin issuer. However, Adrian acknowledged that there are some stablecoins that are less vulnerable to such crises.

Tobias Adrian, director of the International Monetary Fund (IMF), believes that digital assets will see an even steeper sell-off if the US economy enters a recession.

altcoins drop

Fed Announces Its Interest Rate Decision! Here is the Latest Situation in Bitcoin...

The US Federal Reserve (FED), in line with analysts' expectations, increased the interest rate by 75 basis points to a range of 2.25% to 2.5%.

In its announcement regarding the rate decision, the Fed wrote: "Recent spending and production indicators have softened. However, in recent months job gains have been strong and the unemployment rate has remained low. Inflation has driven pandemic-related supply and demand imbalances, high food and energy prices, and broader price pressures. continues to remain high.”

US Federal Reserve

While both Bitcoin and Ethereum prices rose after the announcement, 15 minutes after the announcement, BTC rose 1.7% to $22,000 and ETH rose 2.8% to $1,541.

Analysts had expected the Fed to raise interest rates by 75 basis points in June, as it did at the previous Fed meeting. Market participants were also expecting the same, with derivatives exchange CME's FedWatch Tool showing a 76% probability that the Fed will announce another 75 percentage point increase before the announcement.