Welcome to another week's edition of Overbit.com's Weekly Round Up, where we take a moment to reflect on the overall themes in the industry and where the market may or may not be heading. With the end of the year rapidly approaching, it's essential to analyse macro trends that are being developed.
In this week's edition, we're going to cover the topics of the growth of crypto funds, the interest of crypto by regulators, and the semi-stagnant traditional forex markets.
Kicking off our first story, which relates to the British Pound Sterling, and its recent drop related to ongoing Brexit talks. These Brexit talks which have continued to drag on well past the expected length of the deal, and the "drag out" is being warned as a very significant issue for the UK economy, by the Bank of England Governor, Andrew Bailey.
Bailey has continually warned that a no-deal Brexit would create more long term damage to the UK economy than even COVID-19 pandemic. He continued to state that the impact of a no-deal Brexit might be felt for decades. In regards to the ongoing talks, Ayako Sera, senior market economist at Sumitomo Mitsui Trust Bank, stated his disappointment "It looks like there won't be any agreement to present to the EU summit starting today. Markets have been quite optimistic about a deal. I'm a bit surprised,"
Heading into our next story of the week is the robust growth that crypto-funds are experiencing. A new report from market data aggregator CoinShares has revealed recent surging crypto inflows amid record gold outflows. The report, published Dec. 7, notes that gold investment products have seen record outflows of $9.2 billion over the past four weeks, while BTC products saw inflows of $1.4 billion.
This report highlights a growing narrative that is emerging which is that Bitcoin is the new digital gold, and now this report is showing that, at least to institutional investors, Bitcoin is becoming more attractive than even gold is.
Closing out this week's edition, we're going to highlight a division that's being created in regards to the cryptocurrency space, at least in the US. This division is emerging between regulators and crypto community groups.
The division is that crypto industry groups want less regulation, while some US regulators are requesting even more draconian regulatory measures. Some of these measures include: requiring US Citizens to register all blockchain wallets, KYC measures across all exchanges, and a litany of AML laws being implemented.
These measures will continue to happen as the industry expands and the governments feel threatened by the thought of a non-centralized currency. Regardless, Overbit.com continues to welcome new users every day and is here to provide you guidance tools, and services, to navigate the growth of this industry.