Moody's Analytics warns crypto crash is among most likely economic risks over next 12-18 months

Moody's Analytics chief economist Mark Zandi's latest risk matrix places a cryptocurrency market crash near the top of 27 assessed economic shocks by likelihood over the next 12 to 18 months. While Moody's considers the potential economic damage from a crypto crash relatively limited compared to other risks, the warning highlights that high borrowing costs threaten speculative investments. Four bigger threats identified include an AI stock selloff, escalating Iran war, bond market turmoil, and Federal Reserve policy mistakes. The US 10-year Treasury yield recently reached 5.31%, and traders assign just a 10.5% probability to another October interest rate hike.