Binance Research: Crypto market faces structural weakness
Binance Research experts have noticed the emergence of a “Player vs. Player” model, reflecting structural flaws and weaknesses in the industry. According to it, new capital flows are insignificant, and traders compete with each other for limited profits. The researchers emphasized that the movement of BTC by the US government, the sale of the first cryptocurrency by the German authorities and the start of payments to creditors of the MtGox exchange in early July only worsened the situation in the market.
The slow inflow of liquidity is evidenced by the stagnation of the supply of stablecoins, the outflow of funds from spot Bitcoin ETFs, and the decline in project funding. The report examines factors that could improve the situation in the short and medium term. These include a possible reduction in US interest rates and inflation. Also, new capital inflows could arise from an increase in the supply of stablecoins and the approval of spot ETFs on ETH.
