Zipmex Says Economic Recession Could Delay Digital Assets’ Recovery Until 2025

(CTN News) – According to a source from Asian crypto exchange Zipmex, the prospect of an economic downturn this year might push back the industry’s recovery by another year, to 2025, and warn that the current price increase may only be temporary.

According to the insider, who spoke on the condition of anonymity, digital assets normally cycle every four years, but if a recession hits in 2024, the crypto market’s recovery might be delayed.

“With a rebound expected in 2024, this year’s industry should be comparable to last year. However, if there is a recession, which is expected, things might alter, “the insider said.

“People’s buying power would be smaller under such a situation, leaving them with less money to trade or invest. The recovery may not start until 2025 as a result.”

Since Babel Finance, a Hong Kong-based cryptocurrency lender was discovered to have lost roughly US$280 million in Bitcoin and other tokens through unsuccessful proprietary trading of customers’ assets, Zipmex Thailand, which has Singapore’s Zipmex Asia Pte as a major shareholder, has come under fire.

Zipmex contracted Babel Finance to run and oversee the investments.

The problem impacted withdrawals from the ZipUp and ZipUp+ programs, which enable users to earn returns on their tokens and are provided by the Bangkok-based exchange since October 2020.

The Thai Securities and Exchange Commission is looking into whether Zipmex broke any local laws when it offered specific products using digital assets.

According to a source with knowledge of the situation, media sources have also suggested that V Ventures, a Thoresen Thai Agencies Plc division, may acquire the cryptocurrency exchange for $0.05 million.

The current increase in the price of Bitcoin, according to the Zipmex source, is not expected to be sustained since the market’s underlying principles remain the same.

“In the last two weeks, prices jumped sharply and swiftly, from copy7,000 to $23,000. The fact that no economic indices had changed astonished me. Interest rates and inflation are still high, “the source said

“I predict that the rise will pass quickly. As a recession looms, investors who purchased Bitcoin at a discount may cash out now and keep the cash. We don’t know what will happen, but it is best to maintain cash to pay for basics if the recession is severe.”

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