On May 8, the crypto market was affected by the gradually increasing regulatory pressure factors, and the overall cryptocurrency turned to a weak trend. As of press time, BTC fell 2.37% to $62,233.8; ETH fell 2.65% to $2,990; SOL fell 5.92% to around $145.5.
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According to Coinglass data, as of 20:00 on May 8, 1,598.05 BTC flowed into exchange wallets in the past 24 hours, and 5,096.3 BTC flowed into exchange wallets in the past 7 days.
According to market news, regulatory activities may explode in the next few months, which will greatly affect the overall token upward momentum, especially the DEFI sector and stablecoin track that have attracted much attention from regulators.
The first to be included in the regulatory catalog by the regulators are "mixer" companies and related tokens, among which "cryptocurrencies" may continue to be restricted. In addition, the DEFI sector may also need to experience "severe cold and heat" because the advocacy of decentralization does not meet the "interest needs" of the regulatory authorities.
It is worth noting that this regulatory campaign particularly emphasized the role of stablecoins in illegal finance (money laundering, gambling), which may mean that exchanges will further strengthen their KYC (real-name authentication) requirements.
At the same time, I believe that after this round of regulatory movement, the "Stablecoin Bill" that has been pending will receive a huge boost and will most likely be finalized in 2025.
In addition, I think we need to pay special attention to the US SEC's "securitization movement" on cryptocurrencies, and ETH may be the biggest impact in the short term. This is because the SEC has never "relaxed" its classification of ETH's securities attributes.
As the U.S. SEC continues to scrutinize crypto industry players including Robinhood, Binance, Coinbase, and Ripple, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has warned of an impending surge in enforcement actions. Behnam highlighted the lack of a regulatory framework and transparency in the evolving crypto industry, which he believes will inevitably lead to more cases of fraud and manipulation.
Behnam expects a "cycle of enforcement actions" to occur over the next six months to two years, driven by the rapid appreciation of digital assets and strong interest from retail investors. In addition, Behnam believes that without proper regulation, fraud and manipulation will persist.
It is worth noting that regulation is a "double-edged sword" from the beginning to the end, and will eventually develop in a positive direction. According to historical market trends, although the strengthening of regulation will cause token prices to fluctuate downward, each action will usher in new upward momentum and higher expectations. CoinLeizhen believes that this round will be no exception.
Finally, let’s share some tokens that are expected to break out of the weak market.
First of all, the halving of Ethereum Classic (ETC) is positive. It is expected that ETC will reduce production on June 3, 2024. The current block reward is 2.56 ETC, and the block reward after the reduction will be 2.048 ETC.
Secondly, AI sector tokens. As a track that global finance and technology are betting on, AII IN may usher in an explosion at any time.
Finally, the RWA sector is expected to break through the trillion-dollar market value, but its current market value is less than 10 billion US dollars, which is not in line with market rules. I believe that this sector will produce more than one dark horse in the next few years, and ONDO may be one of them. $ETH
