Haciyev Reşit 
Moody’s Chief Economist Mark Zandi has warned that the risk of a broad correction in global financial markets, including cryptocurrencies, has significantly increased. According to Zandi, despite recent price pullbacks, crypto assets—as well as traditional safe-haven investments like gold and silver—remain exposed to downside risks, and the current market structure retains its fragility. He highlighted that rising macroeconomic uncertainty, geopolitical tensions, and tightening financial conditions are putting pressure on investors, with weakening global growth expectations particularly affecting risk assets. High interest rates and constrained liquidity are also cited as major factors driving market volatility. Zandi emphasized that investors should act cautiously under current conditions and be prepared for potential correction scenarios.
Downside Risk Persists Across Crypto and Traditional Assets
Zandi stressed that the current market outlook poses correction risks not only for cryptocurrencies but also for traditional assets such as gold and silver. He noted that despite recent declines, asset prices remain fragile, underscoring the importance of strong risk management for investors.
He stated:
“The market is currently overheated with speculation. At the same time, asset prices are falling sharply, delivering shocks to an already fragile economy.”
Zandi also pointed out that U.S. economic growth is below potential. Real GDP growth is around 2.5%, slower than expected, employment growth is slowing, and the unemployment rate has begun rising gradually. Meanwhile, the Personal Consumption Expenditures (PCE) price index, closely monitored by the Federal Reserve, remains around 3%, indicating that inflationary pressures have not fully subsided.
Interest Rates and Financial Conditions Could Increase Pressure
According to Zandi, another key factor raising global risks is tightening financial conditions and increased uncertainty. He noted that withdrawals by major investors from the U.S. Treasury market have been absorbed by hedge funds engaged in leveraged arbitrage, creating the potential for sudden and sharp interest rate spikes. Combined with high budget deficits and increased borrowing needs, this could raise financing costs and pressure both traditional and crypto markets.
Additionally, uncertainties from rising tariffs and Iran-related geopolitical tensions add further strain to global markets. Zandi emphasized that these developments weaken investor confidence and reduce risk appetite, warning that financial conditions could tighten further. If global uncertainty persists, selling pressure on risky assets may increase, prolonging market volatility.
Assessment
Mark Zandi’s statements from Moody’s highlight that the risk of a broad correction—including in cryptocurrencies—is rising across global markets. Signs of slowing U.S. economic growth, high interest rate risks, and ongoing geopolitical uncertainty may prompt investors to act more cautiously. In the coming period, macroeconomic developments and central bank policies will remain key determinants of the crypto market’s direction.
You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news and updates instantly.