As crypto traders ask why bitcoin prices shot downward, the power and influence of exchanges are at the center of the conversation.
After settling in at the $10,000 price level, bitcoin (BTC) suddenly and rapidly fell more than 5 percent in an hour on Wednesday. As the market discusses possible explanations, some floated the unexpected simultaneous downtime of Binance and Coinbase as a causal factor.
In this episode of The Breakdown, we discuss the power exchanges wield - both in terms of market liquidity as well as the ability to shape news cycles. The good news is new funding for insurgent exchanges suggest that power is not inevitable.
Lastly, we discuss the latest in central bank digital currencies, with Sweden launching an e-krona pilot, a former head of China’s national bank saying the coronavirus could accelerate efforts to develop a digital yuan, and a new member of the Libra Association.
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