Binance Research: Crypto Market Resembles 'Zero-Sum Game' Amid New Money Shortage

IconCryptoNewsTerminal Staff19 Jul, 2024

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Binance Research: Crypto Market Resembles 'Zero-Sum Game' Amid New Money Shortage

Binance Research Highlights Zero-Sum Crypto Market In a recent report, Binance Research paints a grim picture of the current cryptocurrency market, likening it to a "zero-sum (PvP) game of musical chairs as new money largely dries up." This competitive environment pits traders against one another in a struggle for existing revenue. The report attributes the market downturn to a confluence of factors, including a slowdown in stablecoin issuance, declining Bitcoin spot ETF inflows, and decelerating project investment. Despite a recent rally in Bitcoin's price, it remains 14% below its March all-time high. While the market remains challenging, Binance Research notes a potential shift in the macro environment favoring crypto. Easing inflation and expectations of rate cuts could provide a boost. Moreover, increased stablecoin issuance and the approval of a spot Ether ETF could re-energize the market.

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