Research Summary
The article discusses the significant net exchange outflows following the SEC’s charges against Binance and Coinbase. This trend began after FTX’s collapse in November. The author predicts a long period of uncertainty, followed by a financial settlement and a clearer framework defining which crypto assets are “securities”. The article also mentions an important week for central banking, with the US Fed on hold, the European Central Bank expected to hike by 25bps, and the Bank of Japan potentially surprising with policy.
Actionable Insights
- Monitor Regulatory Developments: The crypto industry is likely to face a long period of uncertainty due to SEC’s charges against major exchanges. This could lead to a financial settlement and a clearer framework for crypto assets.
- Central Bank Decisions Impact Crypto: Decisions by the US Fed, European Central Bank, and Bank of Japan could influence the crypto market. The US Fed is expected to hold, the European Central Bank is expected to hike by 25bps, and the Bank of Japan could surprise with policy.
