What crypto market participants were talking about this week

QCP Capital analysts believe that the risks of a correction have increased for digital currencies. However. experts suggest that this cycle will be short-lived. The company said in a report that the growth of the metric on Deribit and Binance, coupled with the rush to buy meme coins, makes them wary of a downward movement in the first cryptocurrency. The analysts noted that this often happens when investors least expect it.

The SEC has filed a lawsuit against market maker Cumberland. The company is accused of operating as an “unregistered dealer” in crypto transactions. According to the regulator, the firm made money on the sale of digital assets, calling it “the sale of exchange-traded goods.” The SEC wants to ban Cumberland from working with cryptocurrencies, return illegally obtained income in excess of $2 billion, and pay a fine.

Meanwhile, CEO Zac Townsend is confident that the proposed 25% tax on unrealized capital is extremely harmful to early Bitcoin investors. The legislative initiative could trigger a massive sell-off and investors leaving the crypto market. “ The plan would hurt all investors by encouraging a sell-off by larger investors to fund their tax payments. This sell-off would drive down the price of cryptocurrencies and impact returns for everyday investors, including those who have only invested small amounts in the hope of improving their economic situation,” Townsend said.

A new Bloomberg report says that 47% of hedge fund managers have access to digital currencies. 67% of respondents intend to maintain their investments in crypto assets, 33% are ready to increase investments in the near future. AIMA top manager James Delaney noted that the clarity of international regulation “increases the trust” of funds in digital currency. “The results of this year’s report indicate a steady recovery in trust over the past year,” the expert said.