Behind the two news: the signal of declining trust in the Crypto Assets market



Recently, two seemingly unrelated news stories, when interpreted together, reveal subtle changes in the Crypto Assets market. On one hand, the U.S. House of Representatives is pushing a new bill that plans to prohibit the President, his family members, and members of Congress from participating in Crypto Assets and stock trading, releasing a warning from a regulatory perspective about the "interweaving of power and capital," which indirectly reflects that assets like Crypto Assets have still not completely shed the label of "high risk and easily manipulated."

On the other hand, S&P Global has given the cryptocurrency giant MicroStrategy a credit rating of B-, a relatively low rating that is linked to the asset structure risk associated with MicroStrategy's large Bitcoin holdings, as well as reflecting Wall Street institutions' cautious attitude towards the cryptocurrency market. In hindsight, the impact of the previous 1011 "black swan" event, combined with former President Trump's past unstable remarks on the cryptocurrency field, means that even traditional financial institutions can hardly hide their negative expectations for the cryptocurrency market, with overall confidence significantly cooling compared to before.
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