Daily Flash | The Cryptocurrency market will pose a risk to financial stability；The degree of market pessimism has reached the lowest point since the "March 12" incident

Today's Topic - If the cryptocurrency market continues to grow, it will pose a risk to financial stability

On May 24, the European Central Bank wrote "Decrypting Financial Stability Risks in Crypto-asset Markets", pointing out that despite the risks in the cryptocurrency market, investors' demand for crypto assets has been increasing.

The report also believes that if the crypto asset market continues to develop rapidly, crypto assets will pose a risk to financial stability. Systemic risk will increase with the degree of correlation between the financial sector and the crypto asset market, the use of leverage and the increase of lending activities. Regulators need to keep an eye on the developments and narrow the regulatory gap.

The crypto market poses a "risk" to the stability of traditional finance, which may be a good thing. What do you think of it?

Today's Chart - The degree of market pessimism has reached the lowest point since the "March 12" incident in 2020

The on-chain Analyst Santiment tweeted that the pessimism in the Bitcoin and crypto market has reached the low point since the "March 12" market crash in 2020.

When the market is gripped by fear, are you greedy or fearful?

Today's Influencer - Ray Dalio admitted that his portfolio included "a small part" of Bitcoin

On May 24, in CNBC's Squawk Box program, Ray Dalio, founder of Bridgewater Associates and a billionaire, admitted that Bitcoin was part of his portfolio. Bitcoin "has made great achievements in the past decade". As a result, his view of the asset has changed.

He stressed that Bitcoin has become a substitute for gold and other assets. In addition, Dalio pointed out that Bitcoin has become a new form of currency that may replace fiat currency. He suggested that Bitcoin is in a favorable position to serve as a medium of exchange and a means of storing value.

Hot events yesterday - #eBay released NFTs for the first time; #12% of American adults hold cryptocurrency and most of them are high-income people

The Hang Seng Index added 30 Chinese companies related to metaverse

12% of American adults hold cryptocurrency and most of them are high-income people

Author: Gate.io Researcher Byron B. Translator: Joy Z.
* This article represents only the views of the researcher and does not constitute any investment advice.*Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.