The crypto market is agitated because some analysts predict weakness in the near term. Nevertheless, there is no need to fear negative consequences. The cryptocurrency industry has been showing remarkable resilience in the face of global headwinds.

Recently, analysts at Binance Research highlighted a "Player vs. Player" model, reflecting structural deficiencies and weaknesses in the crypto industry. According to this model, new capital inflows are minimal, and traders are competing against each other for limited profits. Researchers believe the current turmoil in the crypto market is caused by huge BTC transactions by the US government, sell-offs of the flagship cryptocurrency by German authorities, and payouts to creditors by the Mt. Gox exchange which began in early July.

Binance Research highlights a slowdown in liquidity inflows in the crypto industry. This conclusion is backed by several factors such as the stagnation of stablecoin supply, outflows from Bitcoin spot ETFs, and curtailed project funding. Nevertheless, the current state of affairs is in no way hopeless. Their report discusses schemes that could improve the situation in the short and medium term. Among these are looming rate cuts by the Federal Reserve and its efforts to combat inflation. Additionally, new capital inflows could arise from an increase in stablecoin supply and the approval of spot ETFs for Ether.

Previously, KPMG, one of the largest auditing firms, and Cryptio, a developer of a cryptocurrency accounting platform, teamed up to create an alliance to assist crypto companies. Specialists help firms prepare financial statements according to US accounting principles.