Cryptocurrency Selloff Signals Risk-Off Mood Into New Year — Market Talk
The cryptocurrency selloff may suggest major risk-off sentiment going into the new year, says DBS Chief Economist Taimur Baig in a note. Recent falls in bitcoin prices could have been driven by regulatory uncertainty, some major crypto-related law enforcement action, and marginally tighter liquidity, the economist notes. The declines likely show a degree of exhaustion in the speculative assets market, he adds. Nonetheless, while the crypto selloff could be a point of concern for the U.S. economic outlook, Baig notes that such digital assets "don't make or break the U.S. economy." ([email protected])