Crypto Assets Threaten Financial Stability, Says ECB

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Altcoins
Crypto Assets Threaten Financial Stability, Says ECB

According to recent reports, trading numbers of crypto assets like ETH, BTC, and Tether have surpassed New York Stock Exchange volumes. The ECB says that the threat grows bigger as institutional investors continue to invest in these crypto markets.  

Earlier today, Bloomberg reported that the European Central bank considers the crypto market a financial stability risk. The ECB highlighted that the dramatic surge in crypto markets means the sector is on the path to being a risk for financial stability. The ECB noted that regulations must be adopted in the crypto space. 

But Kristin Smith, Blockchain Association Executive Director, said sometime back that most policymakers in the US senate realize that their constituents are continually investing in these assets and building on “blockchains and are passionate about public policy in this space.”

When talking about crypto gaining the attention of policymakers, Kristin continued to say, 

“As an industry and an ecosystem we’ve caught the attention of the congress, and with the exception of a few outliers, most of them are if not already crypto champions. They are crypto curious and they want to learn about this. So I think it’s incumbent upon us and the crypto ecosystem to make sure that they continue to grow and learn and understand.” 

Presearch Token Continues to Perform Well 

Presearch has performed exemplarily ever since they first announced their upcoming mainnet release. However, things got even more interesting last week when they announced that the mainnet was due sometime this week. The reports from their social media channels indicate that the mainnet launch is due on Thursday, May 26th.

On May 12th, when the crypto market was at a bearish trend, Presearch was trading at merely $0.05651. However, two weeks later, the coin appeared to recover vastly, hitting a high of $0.174 on May 23rd. While the coin is trading at just $0.1395 at writing, this value is still about a 22% increase from its lows seven days ago. 

Since the Presearch mainnet launch is coming in a few days, investors should expect further price gains with this token. It could efficiently perform well, creating a new one-year high. While its most long-term resistance should be its all-time high of $0.76, the continuous adoption of this search engine will drive prices high. 

One of the factors that could drive PRE prices much higher is the organization’s long-term plan. In an interview with BTCmanager a few months ago, Collin Pape, the presearch network CTO, said, 

“Over time, there’s potential to enable people to monetize their own data if they chose to provide it… And there is potential in the future that if you wanted to share different information about yourself demographically that you could gain more rewards. Of course, you would stay in control of that information… The Presearch token is what we incentivize all the participants with, it’s what we do nominate any of the offerings in.” 

These long-term plans will translate the Preseach search engine into a great network.

$12 billion Offloaded From ETFs

Earlier today, Bloomberg reported that “roughly $12 billion has been pulled from sector ETFs in May — with the category on track for its biggest monthly drawdown on record.”

According to the Bloomberg report, around $11.9 billion was removed from ETFs in May, opening this market to the largest monthly drawdown. According to Bloomberg, this is the first time the ETFs posed net outflows since September 2020. 

Stocks End the day at Lows; Tech Stocks Suffer

Today, the stock market ended the day with lows, with tech stocks appearing to be most affected. According to Bloomberg, these declines in tech stocks come after Snap announced profits warnings. 

Katie Koch, Goldman Sachs’s CIO of public markets equity, noted that private markets discounting bad news on technology is “still a couple of quarters away.” Many experts have affirmed that this bad news is why many tech stocks have been plunging. However, bonds appeared to climb as the sessions closed according to Bloomberg. 

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.