Economic News Roundup

Global Economics:
G7 central banks are signaling interest rate cuts, with Canada leading. Normally, this would trigger a rise in crypto prices as speculators rush in. But prices are declining, as market anticipation drives movement, not the actual event. A key shift is that major asset management firms now control much of the trading volume, reducing the influence of traditional "whales."

Price Sustainability:
Crypto order books have always been dominated by a small percentage of transactions. However, with large asset managers in control, trading no longer happens openly. As a result, the future of crypto exchanges as we know them may be fading.

Regulations:
It's becoming harder to convert crypto to cash in the EU and NA due to tighter regulations. For larger players, moving significant crypto into fiat is increasingly challenging. Private wallet transactions will soon lose value as only KYCed exchanges will be allowed into the economy.

What It Means for Traders:
Crypto trading may soon resemble forex, with most assets held by institutions, and traders dealing in CFDs. Large crypto holders in private wallets will either be surveilled or see their assets become worthless due to regulatory hurdles. Privacy coins and mixers won’t protect against scrutiny, and proving legitimacy for DEX trades will be nearly impossible.

Sep-11-2024 06:51:39 AM