Binance Research analysts have identified problems in the crypto market

Binance Research experts have identified a Player vs. Player (PvP) model in the cryptocurrency market, which indicates structural weaknesses in the industry. Under this model, new capital flows are minimal and traders are forced to compete for limited profits.

Market Impact

The main factors that exacerbated the situation were the movement of bitcoins by the US government, the sell-off of the cryptocurrency by the German authorities, and the start of payments to Mt.Gox creditors, which led to the return of 140,000 BTC to the market. These events increased the volatility and instability of the market.

Liquidity issues

A report by Binance Research emphasizes the slowdown in liquidity inflows. Signs of this trend include stagnant supply of stablecoins, outflows from spot bitcoin ETFs, and decreased funding for cryptocurrency projects. This leads to the market seeing gains for some participants at the expense of losses for others.

Possible catalysts for growth

Despite the current problems, analysts also see potential catalysts that could improve the situation in the short and medium term. These include a possible decrease in US interest rates and inflation, which could stimulate the crypto market. It is also expected that an increase in the supply of stablecoins and the approval of spot Ethereum (ETH) ETFs could attract new capital.

KPMG and Cryptio alliance

Against the backdrop of these developments, KPMG and Cryptio have formed a strategic alliance to help cryptocurrency companies prepare US GAAP financial statements. This alliance is aimed at developing and implementing new methodologies that take into account the specifics of digital assets and comply with GAAP requirements.