Experts from Binance Research Identify Structural Problems in the Cryptocurrency Market
Experts from Binance Research have identified serious structural problems in the cryptocurrency market, which they have characterized as a «Player versus Player» model. Within this model, the market suffers from a lack of new capital investment, leading traders to compete for limited profits. Recent events, such as the movement of bitcoins by the US government, the sale of the first cryptocurrency by German authorities, and the beginning of payouts to MtGox exchange creditors in early July, have only worsened the current situation.
Analysts Highlight Lack of Liquidity Inflow in the Market
Analysts have noted that the slowed liquidity inflow in the market can be seen in the stagnation of stablecoin offerings, outflows from Bitcoin spot ETFs, and reduced funding for projects in the crypto industry. This indicates current issues with providing the market with necessary financial resources.
Potential Factors to Improve the Market Situation
The report discusses potential factors that may improve the situation in the near and medium term. Among them is the possibility of a decrease in interest rates in the US and a decrease in inflation, which could stimulate capital inflows into the cryptocurrency market. Additionally, an increase in stablecoin offerings and the approval of Ethereum (ETH) spot ETFs could be important factors in restoring liquidity and attracting new investments.
KPMG Partners with Cryptio to Ensure Financial Reporting Compliance
One of the largest audit firms, KPMG, has partnered with the cryptocurrency accounting platform Cryptio to create an alliance to assist cryptocurrency companies in preparing financial reports in accordance with US accounting principles. This collaboration aims to improve transparency and regulation in the crypto industry, which could contribute to its stability and development in the future.
