Crypto Assets, Capital Flows, and International Cooperation

Abstract

Bitcoin prices have been on a roller coaster. After peaking at 19,500 USD last December, the price of bitcoin plummeted to the 6,800 USD range in early February and now is moving around 9,000 USD. While volatile, the market continues to develop in size. The total market capitalization of all crypto assets reached over 800 billion USD earlier this year, with bitcoin taking up one-third of the market. This market capitalization remains modest, however, compared to conventional assets. The market caps of Apple and Samsung Electronics stand at 900 billion and 350 billion USD, respectively, and the gold market remains about ten times bigger than the crypto asset market at its peak. As such, crypto assets may not pose a systematic risk at this point.