The bear market in 2022 has been quite challenging for both cryptocurrencies and crypto companies. in May of 2022 Terra-LUNA The bankruptcy chain that started with FTXcontinued with its bankruptcy.
After the tough 2022 cryptocurrencies It made a good start to 2023 and recorded significant rises.
While 2023 is expected to be a good year for the crypto sector, US regulators have increased the pressure on the crypto sector and Binance targeted important platforms such as
Commenting on US regulatory pressure on crypto, Coindesk reports JP Morgan analysts of this raid stablecoin He said he shrunk his universe.
As the stablecoin market continues to shrink Bitcoin (BTC) Stating that a sustainable recovery and rise in crypto prices is unlikely, analysts argued that the shrinkage in the stablecoin market should stop for permanent rises in crypto.
JP Morgan analysts led by Nikolaos Panigirtzoglou made the following statements in their report:
“The effects from US regulatory pressure on the crypto industry, the effects of the banking crisis on the crypto ecosystem, and the repercussions of last year’s FTX collapse are putting pressure on the stablecoin universe, which continues to shrink.
Because although cryptocurrencies, especially Bitcoin, have made a positive start to 2023, the total market capitalization of the crypto industry fell from $1.26 trillion on April 13 to $1,089 trillion last month. This is the result of the oppression.”
Despite shrinkage and pressure in the stablecoin market Tether (USDT) Stating that its dominance and market share continues to increase, analysts say that the regulatory pressure in the US is losing market share. to USD Coin (USDC) He said it continued to do harm.
Analysts also noted that the SEC’s stablecoin is Binance. Binance to USD (BUSD) He added that Tether dominance has increased even more with the pressure on him.
Finally, analysts pointed out that the share of US Treasury bills in stablecoin reserves has increased and stated that in a possible bad scenario in the US economy, stablecoins may be adversely affected, and therefore cryptocurrencies may also be adversely affected by this situation.
*Not investment advice.
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