Crypto markets are not a wild west
According to the relevant research report published on April 18 through the Central Bank of Dallas Globalization Institute, both the announcement and implementation of measures to regulate the crypto markets will have a significant impact on their rates. Reports of crypto bans, the rejection of a currency rating or a security rating have both caused prices to fall, while news of clear legal requirements has caused prices to rise.
Why does regulation affect courses?
When exploring why cryptocurrencies, despite their decentralized nature, react so noticeably to the regulatory intentions of the authorities, the researchers suspect that traditional financial institutions (i.e. banks) are still the most important bridge to the crypto markets, as crypto investors use them to invest their money in the Bring or withdraw crypto markets. Planned regulatory measures can strengthen this bridge or threaten to tear it down, which is probably one of the reasons for its impact on crypto prices:
“Why do national news about planned regulatory intentions have a significant impact on the price development of cryptocurrencies that are at home everywhere and nowhere and are traded internationally? We suspect that the crypto markets are still dependent on regulated financial institutions that can convert normal national currencies into cryptocurrencies. ”